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Buyers court Telkom's Multi-Links

Jul 28 2010 13:03

Company Data

Telkom Sa Ltd [JSE : TKG]

Last traded R23.81
Change R0.03
% Change 0.13%
Cumulative volume 3.22m
Market cap R12.40bn

Last Updated: 25/05/2012 at 19:32. Prices are delayed by 15 minutes. Source: McGregor BFA

 

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Johannesburg - At least two investors have shown interest in the troubled Nigerian unit Multi-Links of Telkom [JSE:TKG], the group's chairperson said on Wednesday.

"We got an offer from one GSM operator, an offer from an infrastructure fund. It's offers to talk," Jeff Molobela told reporters.

The Nigerian unit, Multi-Links, is one of four mobile operators using the CDMA technology platform in a market overwhelmingly dominated by the rival GSM standard.

Telkom wrote down the value of Multi-Links by R5.2bn in the financial year to end-March and its chief financial officer told Reuters last month that selling the unit was "one option".

However, it is unknown whether Telkom's incoming management will decide to keep the unit.

The company has appointed Jeffrey Hedberg, the former head of the Nigerian unit, as its acting chief executive, after long-time leader Reuben September stepped down this month.

CFO Peter Nelson is due to depart in October.

Telkom has yet to announce a permanent chief executive and Molobela said Hedberg is included among possible candidates.

Telkom is struggling to craft a convincing turnaround strategy and has been hit by higher costs and tough competition at home, as well as hefty Nigerian losses.

Hedberg, an American from Boston, is unlikely to be appointed as permanent chief executive because the government, the company's largest shareholder, will want a South African, analysts have said.

The stock has fallen by 10.63% since January.

 - Reuters

 
 
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