Telkom shares soar as Sipho Maseko’s acquisition bid confirmed

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Telkom’s share price soared close to 8% on Monday morning after the partly state-owned company’s confirmation that it is being courted for acquisition by a consortium led by former chief executive Sipho Maseko.

) to acquire a controlling stake in Telkom, where he was chief executive for eight years. Maseko has been credited with saving Telkom from inevitable doom by giving it a chance to move away from its stale fixed-line business and by making inroads into the mobile market.

News of the possible bid came after Telkom shares plummeted more than 30% in a single day last month after warning of a R13 billion writedown and a decline of as much as 105% in its annual earnings. , leading market commentators to see the company as being in a vulnerable position.including the proposed offer price and certainty of funding, the company said in its statement on Monday.

“As such, discussions remain of an exploratory and non-consensual nature, there being no certainty that the outcome of these discussions will result in a transaction,” it 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.”reported that Maseko had presented Telkom with an offer of R46 a share. The offer, according to the report, was allegedly rejected for being too low and not in the best interests of Telkom shareholders.

 

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