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Telkom receives new offers

2 Jun 2008

Telkom South Africa has received a new takeover approach and a separate offer to buy part of its 50% stake in the country’s largest cellular operator, Vodacom. The full takeover offer has come from a consortium headed by South African businessman and politician Tokyo Sexwale and his firm Mvelaphanda Holdings. The offer is conditional upon Telkom agreeing to spin off its Vodacom stake. Meanwhile, the UK’s Vodafone Group has offered to acquire part of Telkom’s half-share in Vodacom on the condition that the remainder is sold to shareholders. Telkom says it began negotiations with Vodafone on 14 May.

Telkom released a statement which read: ‘The board of Telkom, in accordance with its fiduciary duties, will evaluate all bona fide offers with a view to maximising shareholder value. No transaction will be entered into without requisite shareholder approvals.’ Earlier this year Telkom turned down a takeover offer from Dubai-based telecoms investment group Saudi Oger. The South African government is Telkom’s largest shareholder, with a 38.9% direct stake and a 15.3% interest held via Public Investment Corp.

South Africa, Telkom South Africa, Vodafone Group

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