MTN has become 100% owned by Johnnic-controlled M-Cell following the acquisition of 23% of MTN previously owned by Transnet.
M-Cell acquired just more than 117.6 million MTN shares in exchange for the issue of 366 million new M-Cell shares at R33 per share.
Johnnic Communications has in turn acquired 75 million M-Cell shares from Transnet for R2.5 billion.
Johnnic Communications, formerly Omni Media, will raise the capital to fund the acquisition by way of a rights offer of new ordinary shares at 10c each.
The deal gives M-Cell 100% control of MTN after it bought 4.9% in the cellular service provider in April.
The combined deal will enable Johnnic Communications and parent company Johnnic to maintain their position as controlling shareholders of M-Cell. Johnnic Communications owns 35% of M-Cell and Johnnic and Johnnic Communications` combined interests remaining above 50%.
The deal becomes effective on 17 July and Johnnic Communications has guaranteed Transnet representation on the M-Cell board.
This will in effect pave the way for Johnnic, MTN, M-Cell and Transnet to aggressively "participate in the de-regulation of the telecommunications industry," says Johnnic.
Markets reacted ambivalently to the news, with M-Cell gaining 80c or 2.5% to trade at R33.40 at 11am. Johnnic Communications remained unchanged at R162.
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