Telkom South Africa, the prominent telecommunications operator, has confirmed that a consortium led by its former CEO, Sipho Maseko, has approached the company with a proposal to acquire a majority stake. The consortium, which includes Axian Telecom, an international player, and the Government Employees Pension Fund, has initiated exploratory discussions with Telkom South Africa regarding various factors, such as the price of the stake and potential funding sources.
Telkom South Africa has been the target of merger and buyout proposals from rival companies in the past year. In response to recent media speculation about a rejected bid, the company released a statement on June 12th to provide information about the latest offer. It described the offer as an “unsolicited non-binding indicative letter” and stated that the company’s board is currently assessing it. The board has requested additional clarification on certain elements, particularly regarding the proposed price.
The telecommunications operator cautioned that there is no certainty that these discussions will lead to a final agreement. At this stage, Telkom South Africa has not disclosed the initial financial terms proposed by the consortium.
The consortium, led by Sipho Maseko’s company Afrifund Investments Proprietary, has expressed its interest in acquiring a majority stake in Telkom South Africa. Sipho Maseko served as the CEO of Telkom South Africa until the end of 2021, and now he is involved in this potential acquisition.
As the discussions progress, Telkom South Africa will continue to evaluate the proposal and consider its implications for the company and its shareholders. The outcome of these deliberations will shape the future direction of Telkom South Africa and its position in the telecommunications market.