MTN said discussions are at an early stage, and there is no certainty that the transaction will be consummated. It made it known to its Shareholders that the discussions were to acquire Telkom’s entire issued share capital in return for shares or a combination of cash and shares. Telkom confirmed the discussions in a separate statement issued to shareholders. The deal will face intense scrutiny from the Competition Commission and other regulators, given the size of the two companies and their dominance in the sector. MTN currently has 34.5 million subscribers, making it the second largest mobile operator behind Vodacom. Telkom has 16.9 million mobile subscribers.
The strategic acquisition will enable Bloc to focus its core product strategy on delivering seamless BaaS & banking services while orchestrate leads its fintech Infrastructure with its proprietary payment’s orchestration API. Its rise to a broader payment’s infrastructure company means, as Orchestrate, it can provide businesses instant access to multiple payment methods and providers globally through a single integration (currently available in Nigeria, Ghana, Egypt, South Africa and the USA, with plans to extend support to more foreign payment providers and currencies shortly).