South Africa Gets Another Unsolicited Bid for a Telkom Deal




  • In Business
  • 2022-08-12 07:29:23Z
  • By Bloomberg
 

(Bloomberg) -- The South African government received an unsolicited bid for its 40.5% stake in Telkom SA SOC Ltd., following an announcement that MTN Group Ltd. is planning to acquire part of the carrier.

Most Read from Bloomberg

  • Striking Drop in Stress Hormone Predicts Long Covid in Study

  • The Fed's Damage to the Housing Market May Last Years

  • Garland Seeks to Unseal Trump Warrant, Says He Approved Search

  • China Has Painted Itself Into a Semiconductor Corner

  • Ruto, Odinga Shy of Victory in Latest Vote Counts: Kenya Update

Investment firm Toto Consortium made an offer valued at $433 million for the stake in the nation's third-largest mobile-phone company, according to Bloomberg calculations. The Telkom bid is based on a 30-day average share price of the firm, plus a 20% black empowerment discount, according to an offer letter seen by Bloomberg.

"The offer is subject to the satisfactory conclusion of a due diligence of Telkom," according to the document dated July 24. "We are not averse to collaborating with other stakeholders."

MTN announced last month it's planning a takeover offer for Telkom, sparking interest in the smaller South African operator, with internet-service provider Rain also announcing its intention to combine with Telkom.

State-run Telkom said it would consider an offer or proposal from Rain to merge, once received.

There are no plans to sell the government's stake in Telkom "at the moment," Communications Minister Khumbudzo Ntshavheni said Thursday in a written response to Toto's bid seen by Bloomberg. "Should this situation change, we will communicate."

The National Treasury said in an emailed response to questions it's unaware of the government's intention to sell its Telkom stake.

Toto said the consortium had access to funding and took a long-term view on its investment approach.

"There is no predetermined plan to dilute and/or exit the investment," it said in the letter, signed by Bongani Gigaba, chairman of Toto Investments.

Toto Investments previously made an approach to acquire South African Airways that was rejected within days. The firm proceeded to sue the government for a lack of transparency on the transaction, with the deal going to Global Airways, which owns domestic airline Lift, and private-equity firm Harith General Partners Ltd.

Toto is part of a consortium that controls a 24% stake in Richards Bay Minerals, majority owned by mining giant Rio Tinto Plc. The investment is worth as much as 15 billion rand ($938 million), Toto said in the court documents.

Most Read from Bloomberg Businessweek

  • The Work-From-Home Revolution Is Also a Trap for Women

  • Mark Zuckerberg's Sheryl Sandberg Replacement Has Long Been Meta's Top Fixer

  • Booming Beef Industry Has Urban Cowboys Lining Up to Buy Cattle in Uruguay

  • How Employers Benefit From Offering Unlimited Paid Time Off

  • Amazon's Roomba Deal Is Really About Mapping Your Home

©2022 Bloomberg L.P.

COMMENTS

More Related News

Truss May Need to Match Brutal 2010 Austerity Cuts to Calm Markets
Truss May Need to Match Brutal 2010 Austerity Cuts to Calm Markets

(Bloomberg) -- Prime Minister Liz Truss is under pressure to cut spending on the same scale as George Osborne's infamous austerity drive of 2010 in order to ...

Healthcare Provider Burjeel Seeks $368 Million in Abu Dhabi IPO
Healthcare Provider Burjeel Seeks $368 Million in Abu Dhabi IPO

(Bloomberg) -- Sign up for our Middle East newsletter and follow us @middleeast for news on the region.Most Read from BloombergMacKenzie Scott Files for...

Yuan at the Mercy of Overseas Traders Puts China on Alert
Yuan at the Mercy of Overseas Traders Puts China on Alert

(Bloomberg) -- The onshore yuan is on track for a seventh month of losses, and things could get even worse for its less-regulated offshore exchange rate as...

China Shares Plunge to Lowest Valuation on Record in Hong Kong
China Shares Plunge to Lowest Valuation on Record in Hong Kong

(Bloomberg) -- Grim milestones keep piling up for Chinese stocks listed in Hong Kong. Most Read from BloombergMacKenzie Scott Files for Divorce From Science ...

China
China's Economy Struggles on Covid Curbs, Property Woes

(Bloomberg) -- China's factory activity continued to struggle in September, while services slowed, as the country's economic recovery was challenged by...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: Business