According to media reports, Telkom shares were up by 8.9% on Monday following a report that its former CEO, Sipho Maseko, is planning a bid to buy a 35% stake in the telecoms company.
Reports suggest that the Public Investment Corporation (PIC) which invests retirement funds on behalf of South African civil servants – is backing a possible bid by Maseko for the 35% stake, worth about R4.5-billion at the current share price.
Maseko, who took the reins at Telkom in April 2013 and led several prominent restructurings at the group, stepped down in December 2021, making way for his successor, Serame Taukobong.
BMA understands that the PIC is discussing the potential offer with Maseko’s investment vehicle, Afrifund, and Mauritius-based Axian Telecom.
The 35% stake could be combined with the PIC’s current shareholding to boost the overall holding of the group, Bloomberg said, citing sources. The PIC holds 13.4% of Telkom’s equity, while the government owns 40.5% of the operator.
Dobek Pater, Telecoms Analyst at Africa Analysis, said, “Anything can be bought for a price, depending on the agreements. Sipho Maseko sees an opportunity here, where he expects Telkom, in a more privatised mode, would be able to perform and reform much more efficiently.”
