Telkom shareholders showed little interest in former CEO Sipho Maseko’s takeover bid during the company’s Annual General Meeting (AGM) held on Thursday.
- Approximately 85% of Telkom’s issued share capital was represented by shareholders in attendance, and all resolutions, both ordinary and special, received support of at least 80%.
- However, based on the meeting results, it appears that no significant motion was put forth regarding Maseko’s bid.
- In June, Telkom received an unsolicited offer led by Maseko, the Public Investment Corporation (PIC), and Axian Telecom, a Mauritius-based telecom company, to purchase a substantial stake in the partially state-owned firm.
- Telkom, currently valued at R14 billion, rejected the offer in July, deeming it not in the best interest of shareholders.
- Some shareholders expected Maseko’s proposal to be on the agenda at the AGM for consideration by those willing to evaluate the former CEO’s bid.
- Maseko has ruled out a hostile takeover but remains open to a deal. He stated that if shareholders believe it is a good idea, he and the consortium are still available and willing to engage.
Telkom, in its rejection, cited uncertainty about the effectiveness of Maseko’s strategy, despite the consortium amassing R12 billion. The company also expressed doubts about the consortium’s ability to fund the bid and expressed dissatisfaction with the offered price.
The consortium has responded by stating that it was not given an opportunity to present its case to Telkom’s management or shareholders and address the concerns raised.