SA telecoms operator MTN Group Ltd said on Friday it is in buyout talks with smaller rival Telkom SA for a stock or cash-and-stock deal.
“Discussions are at an early stage and there is no certainty that the transaction will be consummated,” the companies said in a statement on the Johannesburg Stock Exchange.
Telkom’s shares jumped nearly 30% following the announcement, while MTN was up nearly 5%.
The deal, if successful, would bolster MTN in its competition against Vodacom Group, as the carriers look to expand 4G and 5G connectivity to more parts of the country. SA completed a radio frequency spectrum auction in March that was needed to roll out 5G.