Telkom, South Africa’s third-largest mobile network operator, has rejected a bid for a controlling stake in the company presented by Afrifund Investments, a consortium led by its former group CEO, Sipho Maseko. The consortium offered R46 per share in an unsolicited proposal last month.
In a statement, Telkom’s board of directors stated that they have carefully considered the offer but have decided not to continue discussions with the consortium. The board believes that the proposal is not in the best interest of shareholders and that the current Telkom strategy will deliver greater value for them.
Maseko, who stepped down as Telkom’s CEO in December 2021 after eight years, had sought to acquire a controlling stake through the consortium. His departure was followed by the appointment of Serame Taukobong as the new CEO.
This is not the first time Telkom has attracted interest from potential buyers. Last year, MTN, Africa’s largest mobile operator, expressed interest in acquiring Telkom. However, the deal fell through when Telkom failed to provide assurances of exclusivity to MTN.
Additionally, Telkom had terminated discussions earlier this year with Rain regarding a proposed merger between the two entities. Rain is a majority state-owned telecommunications group.
Telkom’s decision to reject the consortium’s bid underscores its confidence in its current strategic direction and its commitment to delivering value to its shareholders. The company remains focused on pursuing its existing strategy and maximizing shareholder returns in the telecommunications market.