Former Telkom CEO Sipho Maseko has confirmed that he and his partners are walking away from their proposal to acquire a 35% of the partially state-owned telecommunications company, Sunday TimesThe consortium comprises Maseko’s Afrifund, Axian Telecom and the Government Employees Pension Fund, managed by the Public Investment Corporation .
If the proposal had been successful, Maseko said he would have added PIC’s share in Telkom to the mix, bringing the consortium’s holding to 51%.“We are definitely walking away. The board has made it clear that they are not willing to engage with us at all,” Sunday Times quoted Maseko as saying. He explained that the consortium hadn’t been given a proper opportunity to present its proposal to the board, which he believes would have helped it understand the strategy.
Maseko’s consortium initially offered R46 a share for a controlling stake in Telkom. Still, Maseko said it would have reconsidered its bid if it was given a hearing by the Telkom board.Telkom CEO Serame Taukobong said the company is worth over R60 per share, and any suitors should see that as a benchmark before making an offer.