African fixed line giant Telkom South Africa has broken off talks with an investment group including Mvelaphanda Holdings and Och-Ziff Capital Management Group over a possible takeover due to ‘current market conditions and pricing considerations’. Telkom first confirmed back in June that it had been approached by a consortium of Mvela Holdings, Och-Ziff and other strategic investors interested in buying Telkom, but without its stake in Vodacom. Telkom did not rule out the possibility of reviving discussions in the future if market conditions should improve.
Meanwhile, Telkom said talks with Vodafone Group over its acquisition of a portion of Telkom’s 50% stake in mobile operator Vodacom and the spin-off of the remaining investment to its shareholders were ongoing. ‘A further announcement will be made in this regard shortly’, it said.