Former Telkom CEO, Sipho Maseko, and his consortium have withdrawn their proposal to acquire a 35% stake in the partially state-owned telecommunications company, Telkom. The consortium, consisting of Afrifund, Axian Telecom, and the Government Employees Pension Fund managed by the Public Investment Corporation (PIC), had hoped to add PIC’s share in Telkom to raise their holding to 51%. However, the deal is now definitively off the table.
According to Maseko, the consortium was not given a proper opportunity to present its proposal to the Telkom board, which hindered the board’s understanding of their strategy. The initial offer was set at R46 per share for the controlling stake in Telkom. Maseko stated that they would have reconsidered their bid if they were given a chance to be heard by the Telkom board.
Despite the consortium’s withdrawal, the situation highlights the interest in the telecommunications company and potential efforts to seek controlling stakes. For Telkom, the development raises questions about its future direction and potential partnerships or investment opportunities on the horizon.
As Maseko and his partners step back from the acquisition bid, Telkom’s board and management may reassess their strategy and consider other potential investors or partnerships to advance the company’s growth and development in the telecommunications market.