The South African government received an unsolicited bid for its 40.5% stake in Telkom, following an announcement that MTN Group is planning to acquire part of the carrier.<\/p>\n
Investment firm Toto Consortium made an offer valued at $433 million (R7 billion) for the stake in the nation\u2019s third-largest mobile-phone company, according to Bloomberg calculations.<\/p>\n
The Telkom bid is based on a 30-day average share price of the firm, plus a 20% black empowerment discount, according to an offer letter seen by Bloomberg.<\/p>\n
\u201cThe offer is subject to the satisfactory conclusion of a due diligence of Telkom,\u201d according to the document dated July 24. \u201cWe are not averse to collaborating with other stakeholders.\u201d<\/p>\n
MTN announced last month it\u2019s planning a takeover offer for Telkom, sparking interest in the smaller South African operator, with internet-service provider Rain also announcing its intention to combine with Telkom.<\/p>\n
State-run Telkom said it would consider an offer or proposal from Rain to merge, once received.<\/p>\n
There are no plans to sell the government\u2019s stake in Telkom \u201cat the moment,\u201d Communications Minister Khumbudzo Ntshavheni said Thursday in a written response to Toto\u2019s bid seen by Bloomberg. \u201cShould this situation change, we will communicate.\u201d<\/p>\n
The National Treasury said in an emailed response to questions it\u2019s unaware of the government\u2019s intention to sell its Telkom stake.<\/p>\n
Toto said the consortium had access to funding and took a long-term view on its investment approach.<\/p>\n
\u201cThere is no predetermined plan to dilute and\/or exit the investment,\u201d it said in the letter, signed by Bongani Gigaba, chairman of Toto Investments.<\/p>\n
Toto Investments previously made an approach to acquire South African Airways that was rejected within days. The firm proceeded to sue the government for a lack of transparency on the transaction, with the deal going to Global Airways, which owns domestic airline Lift, and private-equity firm Harith General Partners Ltd.<\/p>\n
Toto is part of a consortium that controls a 24% stake in Richards Bay Minerals, majority owned by mining giant Rio Tinto Plc. The investment is worth as much as 15 billion rand ($938 million), Toto said in the court documents.<\/p>\n