Telkom South Africa Received Non-Binding Offer From Oger

JOHANNESBURG -(Dow Jones)- Telkom SA, Africa's largest fixed-line phone operator, Tuesday clarified that it had received a non-binding offer from Dubai-based Oger Telecom but that it continued to review its mobile strategy.

Financial details of the offer were not disclosed.

The Pretoria-based company in late November broke off talks to sell its fixed line business to MTN Group and its 50% stake in African mobile venture Vodacom to partner Vodafone Group of the UK. At the time it said it had received certain expressions of interest from other parties, without disclosing any names.

Telkom in a statement to the Johannesburg securities exchange said it had been approached by Oger, but that the two weren't presently in discussions.

"The board of Telkom will consider the Oger approach along with other alternatives as part of the review," the company said, adding that it would communicate the outcome of its review "in due course."

Paul Doany, chief executive of Oger Telecom, was quoted Monday by the Ihlas News Agency as saying the company aims to acquire a controlling stake in Telkom.

Oger has a 75% interest in Cell C, South Africa's third-largest mobile operator behind Vodacom and MTN. It also has a 55% stake in Turk Telekom, among other assets.

Analysts have previously said Telkom might consider buying Cell C in order to make that the platform for its mobile ambitions, then sell out of Vodacom.

Vodacom is South Africa's leading mobile operator by subscribers, and also has operations in Lesotho, Mozambique, Tanzania and the Democratic Republic of Congo. Joint owner Vodafone has on several occasions said it is interested in increasing its 50% shareholding, but talks with Telkom broke down after a deal between Telkom and MTN couldn't be reached.

Telkom in November said discussions to sell certain or all its fixed line businesses to Africa's largest mobile phone company fell apart largely due to the anticipated costs and benefits of implementing a transaction.

The company's chief executive, Reuben September, in mid-December told investors and analysts that the company was open to mergers, acquisitions and joint venture as part of a strategy of building an integrated fixed-mobile communications platform.

Shares in Telkom, which is 39% owned by the government of South Africa, ended the day up 9.36 rand, or 7.4%, at ZAR135.11 ahead of its statement to the JSE and after a volatile day for markets.

-By Robb M. Stewart, Dow Jones Newswires; +27 11 783 7848; robb.stewart@dowjones.com

(END) Dow Jones Newswires

Posted to the site on 22nd January 2008