By Lehlohonolo Lehana.
Telecommunications Group Telkom has rejected a proposal from a consortium that includes its former group CEO, Sipho Maseko, saying it’s “not in the best interest of shareholders”.
The consortium comprises Maseko’s Afrifund Investments, Madagascan operator Axian Telecom, the Government Employees Pension Fund, and the Public Investment Corporation — Africa’s largest asset manager.
The consortium was looking to acquire a 35% stake in the company.
Telkom has now officially shot the deal down.
“The Telkom board of directors, having considered the indicative proposal, has decided not to continue discussions with the consortium, as the board is of the view that the indicative proposal is not in the best interest of shareholders and that the current Telkom strategy will yield better value,” it said in a notice on the JSE news service.
Telkom withdrew a cautionary announcement that it issued in June warning shareholders to exercise care when trading its shares.
The group’s rejection of the consortium’s proposal could pave the way for MTN Group, which had previously entertained the idea of buying its rival, to return to the talks table.
Telkom was trading down more than 6% in the afternoon session on Friday as investors digested the latest news.