MTN to acquire rest of iTalk Cellular

Africa's biggest cellular provider MTN said on Friday that it would buy the 59% of Durban-based i-Talk Cellular that it did not already own, without disclosing the purchase price.
This came after it reportedly changed its mind about following its preemptive rights in the company, before AltX-listed Huge Group entered talks with Bebinchand Seevnarayan Trust to buy the 59% in March.

Huge subsequently said that talks regarding its proposed acquisition of i-Talk had been abandoned.

An exclusive MTN service provider, i-Talk had 11 of its own shops, with a national dealer network of 100 outlets.

MTN was following the preemptive rights that it had to buy the rest of i-Talk from Bebinchand Seevnarayan Trust that the deal stipulated where it bought its 41% holding.

The transaction was subject to competition authority approval.

Meanwhile, on Wednesday, MTN announced that it had agreed to buy 100 of internet-service provider Verizon Business South Africa.

"These two acquisitions are in line with our strategic vision and will add value to our business," MTN SA MD Tim Lowry said in an emailed statement.

"Through these deals we are enhancing our value proposition, building capacity and broadening our reach to enhance our product and service offerings to customers and clients. The i-Talk Cellular acquisition will strengthen our distribution across South Africa," Lowry said.

By: Matthew Hill