Telkom, the South African telecommunications company, has rejected the latest acquisition bid from a consortium led by former CEO Sipho Maseko.
- The consortium had offered to acquire a 51% stake in Telkom for R22 billion ($1.5 billion), which would have given it control of the company.
- Telkom’s board of directors rejected the bid, stating that it did not adequately value the company or its prospects.
- The board also expressed concerns about the consortium’s ability to finance the deal and the potential impact on Telkom’s employees and customers.
- This is the second time that Maseko has attempted to acquire a stake in Telkom, having previously made a bid in 2018.
- Telkom’s share price initially rose following news of the bid, but has since fallen back to pre-bid levels.
- The rejection of the bid has led to speculation about the future of Telkom and whether it will look for other potential buyers or pursue other strategic options.
- Telkom has faced tough market conditions in recent years, with increased competition and regulatory pressure affecting its performance.