Telkom SA ends talks for takeover

Telkom SA ends talks for takeover

Telkom South Africa ended talks with the consortium led by former CEO Sipho Maseko seeking to purchase a controlling stake in the operator.

In a stock exchange filing, Telkom SA said its board had considered the proposal from the Public Investment Corporation, a consortium made up of Axian Telecom, Afrifund Investments Proprietary, Axian Telecom and the Government Employees Pension Fund.

But decided to “not continue discussions with the consortium, as the board viewed the proposal received last month as “not in the best interest of shareholders”, and expressed confidence in Telkom’s current strategy to deliver value.

The proposal was received last month and was met with pushback from current Telkom CEO Serame Taukobong who said the operator did not need a “knight in shining armour”.

Telkom SA had been the centre of multiple acquisitions and merger talks. Most recently MTN dismissed rumours that it was prepping a fresh bid after Maseko went public with the consortium’s bid.

The operator was also reportedly exploring a minority sale of its core fibre business to balance the books.

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