Telkom confirms buyout proposal from former CEO

Telkom confirms buyout proposal from former CEO

Telkom South Africa revealed it was sent a non-binding letter from a consortium led by former CEO Sipho Maseko for a controlling stake in its operations. 

In a statement to shareholders, Telkom said: “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 is no certainty that the outcome of these discussions will result in a transaction.”

Earlier local media reported that Telkom had rejected the deal. The consortium included Maseko’s company Afrifund Investments Proprietary, a consortium that is also made up of Axian Telecom and the Government Employees Fund. 

Telkom had seen multiple offers for mergers and buyouts from market rivals. MTN and Rain both confirmed interest in acquiring Telkom, a move to perhaps mount a stronger offensive against market leader Vodacom. 

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