Telkom’s board has rejected a R12 billion offer for a 35% stake in the company from a consortium led by former CEO Sipho Maseko.
- The consortium, comprised of Afrifund Investments and Madagascar-based Axian Telecom, made a R46 per share offer, which was a 20% premium on the R38 share price at the time.
- However, the board deemed the offer too low and not in the best interest of Telkom’s shareholders.
- Discussions are reportedly still underway, and a revised offer that is not materially different from the original has been proposed.
- Additionally, MTN is said to be considering its options and is considering another bid for Telkom, despite a failed attempt to buy 100% of the company in July 2022.
- Telkom has struggled in recent times, warning of a significant loss in its headline earnings for the full year ending 31 March, due to a range of factors including load shedding, inflationary cost pressures, and costs associated with its retrenchment process.