Telkom’s board has rejected a proposal from a consortium that includes its former group CEO, Sipho Maseko, saying it’s “not in the best interest of shareholders”.
The consortium comprised Maseko’s Afrifund Investments along with Mauritius-based Axian Telecom and the Government Employees Pension Fund.
Telkom received an “unsolicited and non-binding indicative letter” from the consortium about a potential acquisition of a controlling stake in the JSE-listed group.
“The Telkom board of directors, having considered the indicative proposal, has decided not to continue discussions with the consortium, as the board is of the view that it is not in the best interest of shareholders and that the current Telkom strategy will yield better value for shareholders.”
Telkom’s rejection of the consortium’s proposal could pave the way for MTN Group, which had previously entertained the idea of buying its rival, to return to the talks table.
Telkom was trading down more than 6% in the afternoon session on Friday as investors digested the latest news.
