Data-only network has withdrawn its announcement last week in which it asked to make a formal request for a merger with Telkom.
This, after Rain’s proposal was been met with resistance from the Takeover Regulation Panel (TRP), which said Rain acted illegally in making its proposal public.
The TRP said it noted and expressed “grave” concerns Rain’s potential offer to merge with Telkom.
It added the publication of the announcement by Rain was unlawful, and instructed Rain to retract the announcement.
“Following engagement with the Takeover Regulation Panel, at the TRP’s instruction, Rain hereby withdraws its press release of 11 August 2022,” says the data-only network in a statement today.
Last week, the company told ITWeb it was seeking “legal advice” after the TRP fired its broadside.
“As Rain, we are pleased with Telkom’s SENS announcement stating that if an offer or formal proposal is received from Rain, the board of Telkom will consider it.”
Rain says it intends to submit a formal non-binding proposal to Telkom in due course.
Further details will be published as appropriate in compliance with the TRP, it says.
Rain’s announcement came as Telkom is in ongoing discussions with MTN, which wants to take over the telephony company.
Rain had proposed that the merged entity with Telkom would create a formidable third major player to compete with what is effectively a duopoly in South Africa.
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