Bulletin: MTN Group's Proposed Acquisition Of Telkom Could Reduce Rating Constraints But May Face Regulatory Hurdles

JOHANNESBURG (S&P Global Ratings) July 25, 2022--S&P Global Ratings today said that the joint announcement of MTN Group Ltd.'s (BB-/Stable/--) mooted acquisition of Telkom SA SOC Ltd. (BB/Positive/--) could reduce rating constraints for both entities. That said, concluding such a deal could be a prolonged and complex process. In the companies' brief and consistent statements released on July 15, they note that they have commenced discussions regarding MTN's acquisition of Telkom's entire business, to be funded by an equity issuance by MTN and possibly some cash. The companies emphasized that discussions are at an early stage and that the transaction's conclusion was far from certain. No additional details on the structure, timing, or regulatory support for the transaction are available.

...JOHANNESBURG (S&P Global Ratings) July 25, 2022--S&P Global Ratings today said that the joint announcement of MTN Group Ltd.'s (##-/Stable/--) mooted acquisition of Telkom SA SOC Ltd. (##/Positive/--) could reduce rating constraints for both entities. That said, concluding such a deal could be a prolonged and complex process. In the companies' brief and consistent statements released on July 15, they note that they have commenced discussions regarding MTN's acquisition of Telkom's entire business, to be funded by an equity issuance by MTN and possibly some cash. The companies emphasized that discussions are at an early stage and that the transaction's conclusion was far from certain. No additional details on the structure, timing, or regulatory support for the transaction are available. We assess pan-African telecommunications player MTN and South African telecommunication group Telkom as having the same stand-alone credit profiles ('###-'). Our ratings on both companies are subject to...

Bulletin