TeleMasters takeover deal on the cards

TeleMasters Holdings has announced that a company has approached its two largest shareholders to acquire their shares, subject to several conditions.

In a notice to shareholders published on Friday, 5 July 2024, TeleMasters said discussions about the potential takeover were still ongoing.

It added that the acquiring company must still conclude various regulatory processes before making a formal offer.

“However, the interested party has to engage with advisors and funders and thus maintenance of confidentiality of information cannot be controlled by TeleMasters,” the company said.

If a formal offer is made and TeleMasters accepts, it will lead to a change of control of TeleMasters and a mandatory offer on similar terms to its remaining shareholders.

The acquiring company is in the early stages of issuing an Expression of Interest for an acquisition.

TeleMasters said that, if concluded, the acquiring company would require shareholder and regulatory approvals.

“Accordingly, shareholders are advised to exercise caution whilst dealing in their securities until a further announcement is made,” TeleMasters said.

TeleMasters Holdings was founded in South Africa in 2001 and listed on the Johannesburg Stock Exchange in March 2007.

It is one of the six most valuable listed telecoms companies in South Africa. Its current market cap is R63.23 million, up from R46 million in January 2024.

TeleMasters currently has over 57 million shares in issue and has traded profitably each year since its inception.