Telkom South Africa Denies Talks Over $3 Billion Bid from Mystery Investor
Published on: 24th Jan 2014
Note -- this news article is more than a year old.
By: Ian Mansfield
South Africa's dominant landline network Telkom SA has refuted media reports that it has been approached over a potential $3 billion investment in its mobile subsidiary.
Earlier in the week, BusinessTech reported that an unnamed company based in Asia had approached Telkom over an option to either buy the tower assets, or take a stake in the company.
The unrealistic number of $3 billion was being talked about, for what is the country's smallest mobile network. The sum would in fact be double the entire company's market capitalisation.
The report claimed that the unnamed company aimed to buy up to 1,600 Telkom towers and then build an additional 8,400 towers.
In a statement, the company said that it has "not received any proposal from a South East Asian company for the sale of its mobile towers business or an investment of $3 billion."
It did confirm that a previously announced review of the mobile network is ongoing, and that it is talks with "various parties to consider best options for the business".
Telkom Mobile had 1.56 million customers at the end of last September.