Telkom CEO Serame Taukobong has revealed why their discussions with upstart cellular operator Rain broke down.
Telkom CEO Serame Taukobong revealed that discussions with Rain broke down because of different views on the two operators’ valuations.
“The proposed merged entity would create a formidable third major player to compete with what is effectively a duopoly in South Africa,” Rain said. Taukobong has now revealed that the discussions broke down because their valuations differed vastly from what Rain proposed. Rain CEO Brandon Leigh confirmed that one of the reasons discussions were terminated was “the inability to reach an agreement on valuations of both parties”.Rain is on the rise, with strong subscriber growth and rapidly increasing EBITDA .
ARCI has recorded significant gains from Rain’s fair value adjustments over the years, which made it a hotly debated topic among investors. The total impairment loss amounted to R13 billion, which brings the company’s net loss for the year to R9.97 billion.
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