Telkom confirms ‘exploratory’ takeover talks – but says it might not go anywhere
Telecommunications group Telkom has cautioned shareholders to tread lightly in dealing with its shares amid “detailed media speculation” around an unsolicited bid from a consortium to acquire the group.
In a statement on SENS on Monday, the company confirmed that it had received an unsolicited bid from a consortium led by former CEO Sipho Maseko (Afrifund Investments Proprietary Limited), comprising Axian Telecom and the Government Employees Pension Fund, managed by the Public Investment Corporation to acquire a stake in Telkom.
The company said it received a “non-binding indicative letter from the consortium” for the acquisition of a controlling stake in Telkom,” the merits of which are being assessed by the Telkom Board of Directors in accordance with its fiduciary duties”.
The Sunday Times reported this weekend that Telkom had rejected the bid and was seeking more information from the groups involved.
In response to the article, Telkom said that it has requested that the consortium 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,” the group said
“However, having regard to the continued detailed media speculation and Telkom awaiting further clarity,
shareholders are advised to exercise caution when dealing in the company’s shares until such time as a
further announcement is made.”
Telkom said that it is continuing to pursue its strategic value unlock initiatives, and should such initiatives result in any developments that may have a material effect on the value of Telkom’s shares, this will be communicated.
Read: Telkom rejects R12 billion offer – with MTN on standby: report
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