A sign stands at the entrance to the Telkom SA SOC Ltd. head office in the Centurion district of Johannesburg, South Africa, on Tuesday, July 25, 2017. South Africa is evaluating assets it could sell to pay for this months 2.2 billion rand ($169.5 million) bailout of unprofitable carrier South African Airways, Finance Minister Malusi Gigaba said in letter to parliament. Photographer: Waldo Swiegers/Bloomberg via Getty Images

JOHANNESBURG, Jan 11 (Reuters) – South African telecoms operator Telkom TKGJ.J and data network provider Rain have terminated discussions about a potential acquisition of Rain, Telkom said in a statement on Wednesday, sending Telkom’s shares sharply higher.

In September, Telkom received a non-binding proposal from Rain, which wanted Telkom to buy it in exchange for new shares in Telkom.

“After initial discussions, but prior to any due diligence, the parties have decided that a suitable transaction is not possible at this time,” Telkom said.

Telkom’s shares were up about 12% on the Johannesburg Stock Exchange at 1114 GMT.

This is a developing story…

(Reporting by Anait Miridzhanian; Editing by Alexander Winning)

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