South Africa’s Telkom confirm on Monday that it is engaged in exploratory talks with consortium led by Sipho Maseko (Afrifund Investments) and comprising Axian Telecom and the Government Employees Pension Fund, managed by the Public Investment Corporation.
Telkom said the consirtium wants to acquire a controlling stake in a partial state-owned company.
“The company confirms that it has received an unsolicited non-binding indicative letter from the consortium for the acquisition of a controlling stake in Telkom, the merits of which are being assessed by the Telkom board,” said the company in a statement.
“In this regard, the company has requested the consortium to provide further clarity on several matters, including the proposed offer price and certainty of funding. As such, discussions remain of an exploratory and non-consensual nature, there being no certainty that the outcome of these discussions will result in a transaction.
“However, having regard to the continued detailed media speculation and Telkom awaiting further clarity,
shareholders are advised to exercise caution when dealing in the Company’s shares until such time as a
further announcement is made.”
Telkom added that it continues to pursue its strategic value unlock initiatives and should such initiatives result in any developments that may have a material effect on the value of Telkom’s shares, information on such
arrangements will be disclosed to shareholders.
Also read: Telkom board rejects Maseko consortium bid
A consortium led by former Telkom CEO Sipho Maseko presented an offer of R46 a share for a controlling stake in South Africa’s third-largest mobile network, but this was immediately rejected as too low and not in the best interests of Telkom shareholders.
But Business Times understands from well-placed sources that the parties are still in discussions and a revised offer has been presented which is not materially different from the original one.
However, rival network MTN could also revive its interest in a total takeover of Telkom, a move that could present further headaches for Maseko’s Afrifund Investments and its partner, Madagascar-based Axian Telecom. Maseko’s consortium made a R12bn bid for a 35% stake in Telkom in March.
