Telkom rejects Oger Telecoms bid
Oger Telecoms, which currently controls about 75% of local mobile operator Cell C, had approached Telkom in late January this year with a non-binding expression of interest.
Telkom said at the time that while it was not in discussions with Oger, its board would consider the Oger approach along with other alternatives as part of the review of its mobile strategy.
Telkom has said in the past that it was treating the review as an “urgent matter”. It currently owns 50% of Vodacom, while the other half is owned by UK-based mobile operator Vodafone.
In September last year, it said that it had entered into talks with mobile operator MTN and Vodafone, to sell certain assets.
The announcement triggered a storm of market speculation that Telkom could sell its stake in Vodacom to Vodafone, and that MTN could approach Telkom for the balance of the company, which would comprise its fixed-line infrastructure.
But none of those talks were confirmed, and there were even reports of Vodafone CEO Arun Sarin saying he wasn’t interested in buying Telkom’s stake because Vodafone might have to sell part of its stake in Vodacom at a discount. He did however say at the time that Vodafone was interested in increasing its stake in Vodacom.
The talks between Telkom, MTN and Vodafone terminated in under three months, which left analysts guessing that Cell C could be the next target for Telkom.
Now that Telkom has declined the interest of expression by Oger, traders say the share price is declining further, as market players don’t like the move.
“Telkom rejected the bid from Oger, and its share price is down quite a lot,” said one trader.
By 10.15am, Telkom’s share price was trading at R139, down R7, or 4.79% from Friday’s close.
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