With the collapse of the MTN-Telkom deal the question of whether there will be any other corporate merger for Telkom remains. Rain is left as the only prospect for the fixed-line operator.
However, Rain stands to benefit more from Telkom than Telkom will from Rain.
“I don’t think Telkom even thought of Rain because they have been on a value unlock strategy, which entailed selling parts of the business, if not all, to realise some value. A Rain proposal is not in line with the strategy that Telkom has been on. Telkom has not been on a strategy of acquiring another business,” Peter Takaendesa, the head of equities at Mergence Investment Managers, said.
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Anathi Madubela
Anathi Madubela is a business journalist with a keen interest in the retail sector.
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