Govt backs MTN-Telkom talks
In October, Telkom said in a cautionary that it was engaged in discussions with Vodafone Group and MTN Group which were ongoing.
No details were divulged but it said the discussions were part of the group's mobile strategy review.
In a separate announcement, MTN said that the discussions concerned a proposed transaction over certain assets of Telkom.
Speculation is that Telkom could sell its stake in Vodacom to Vodafone, and that MTN could approach Telkom for the balance of the company, which would be made up of its fixed-line structure.
Telkom and Vodafone
Telkom owns 50% of Vodacom, and Vodafone owns the remainder. However, in mid-September there were reports claiming that Vodafone was not interested in the full stake of Vodacom.
According to the reports, Arun Sarin – the CEO of Britain's Vodafone Group – said that Vodafone wasn't interested in buying Telkom's stake because it might have to sell part of the stake at a discount, even though it did say that it was interested in increasing its stake in Vodacom.
The government, which owns a 38% stake in local fixed-line operator Telkom, said in a statement that it is working with others in an interdepartmental task team to ensure that the interest of the country, all the workers and those of shareholders (including Khulisa shareholders), is protected.
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