Telkom has confirmed that it has received an unsolicited non-binding indicative letter from the Afrifund Investments for the acquisition of a controlling stake in Telkom.
Afrifund Investments is a consortium led by former Telkom CEO Sipho Maseko, comprising Axian Telecom and the Government Employees Pension Fund, managed by the Public
Investment Corporation.
The merits of the proposed acquisition are being assessed by the Telkom board in accordance with its fiduciary duties, according to a Stock Exchange News Service (SENS) announcement today.
“In this regard, the company has requested the consortium to provide further clarity on several matters, including the proposed offer price and certainty of funding,” it adds.
“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.”
In view of these moves, shareholders are advised to exercise caution when dealing with Telkom shared.