Another company seeks Telkom takeover



An investment company is now seeking government’s 40.5% stake in Telkom.

Investment firm Toto Consortium wants to buy government’s stake in Telkom for over R 7 billion.

Toto is part of a consortium that controls a 24% stake in Richards Bay Minerals – the majority is owned by mining giant Rio Tinto Plc.

But Communications Minister Khumbudzo Ntshavheni says that government has no plans to sell its share of South Africa’s third-largest mobile-phone company.

Meanwhile, MTN and Rain have made their intentions known to acquire stakes in Telkom.

MTN may be seeking a total takeover, while Rain wants to merge with the telecoms company.

For its part, Telkom says it will consider a formal offer from Rain.

But independent analyst, Dr Dale McKinley insists that these moves will essentially lead to the privatisation of Telkom.

He says that communications regulator, Icasa should also look at pricing in the sector to protect citizens from the monopoly these companies are seeking in this market.

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