Telkom, Rain terminate deal talks; Telkom shares jump

Telecoms operator Telkom and data network provider Rain have terminated discussions about a potential acquisition of Rain, Telkom said in a statement on Wednesday, 11 Janaury, sending Telkom's shares sharply higher.

Customers are served at a branch of South Africa's mobile operator, Telkom, in Johannesburg, South Africa, on 2 March 2022. Reuters /Siphiwe Sibeko/File Photo

In September, Telkom received a non-binding proposal from Rain, which wanted Telkom to buy it in exchange for new shares in Telkom.

"After initial discussions, but prior to any due diligence, the parties have decided that a suitable transaction is not possible at this time," Telkom said.