Ventures Africa
Douglas Imaralu

Ventures Africa – Africa’s largest integrated communications company Telkom recorded close to 8 percent increase yesterday to an intraday high of R21.95  ($2.68) on the JSE, before settling back to close 2.41 percent higher at R20.84 ($2.54)  as rumours lingered about the South African government possible re-nationalisation of the company.

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Bloomberg
Sikonathi Mantshantsha 

Vodafone Group Plc (VOD)’s South African unit Vodacom should lead its African expansion if it is to narrow the gap with MTN Group Ltd. (MTN), which has capitalized on its rival’s inertia to build a business three times its size, Investec Asset Management said.

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Bloomberg
Janice Kew

Telkom SA Ltd. (TKG), South Africa’s worst- performing stock over the past five days, will struggle to persuade investors to pump more money into the company with government as its main shareholder.
The Cabinet last week blocked the sale of 20 percent of Telkom to KT Corp. (030200), South Korea’s biggest phone and Internet provider, for 2.7 billion rand ($324 million). The government, which owns 40 percent of Telkom, is considering a rights issue or an increase in debt to help fund a return to profit for Africa’s largest fixed-line operator, Communications Minister Dina Pule said on June 5.

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The New Age
Sibonelo Radebe

The largest banking group in the country, Absa, appears to have grossly mishandled what could have been a simple retrenchment process by choosing a somewhat Machiavellian path which has turned into a PR nightmare.

Absa was forced to backtrack on its staff-culling process last week. The bank withdrew retrenchment letters issued to 140 employees and appeared to have accepted that it had erred. An Absa spokesperson said the bank “regrets the timing of the retrenchment letters and would continue dialogue with workers”. Absa has for months tried unsuccessfully to deflect reports that it was planning a massive retrenchment process.

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Business Day
Thabiso Mochiko

But South Koreans now offering 29% less, corresponding to the drop in South African fixed line operator’s share price since deal was proposed

TELKOM shares closed 1,46% higher at R23,65 yesterday on news that South Korea’s KT is still interested in buying 20% of the telecommunications provider, but at a price 29% lower than that proposed in October.

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Bloomberg
Sikonathi Mantshantsha and Janice Kew
 
KT Corp. agreed to pay Telkom SA Ltd. (TKG) 1.08 billion rand ($140 million) less than initially indicated for 20 percent of Africa’s largest fixed-line phone company.

KT, South Korea’s biggest phone and Internet provider, will pay 25.60 rand a share, or about 2.68 billion rand, for the holding, Pretoria-based Telkom said today in a statement. That’s 29 percent less than a 36.06 rand-a-share offer announced Oct. 14, according to Bloomberg calculations.

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Business Day
Ron Derby

Telkom’s share price fell yesterday to its lowest level in more than three years on speculation that South Korea’ s largest phone company, KT Corporation, may abandon its offer for a 20% stake or cut its offer price because of the stock’s poor performance .

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KT Corp. (030200) may cut the price of an offer to buy a stake in Telkom South Africa Ltd. (TKG) or abandon the 3.8 billion rand ($505 million) transaction, Absa Asset Management and MMI Asset Management said.

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The twin perils of political and currency risk bedevil the future prospects of telecoms giant MTN Group [JSE:MTN]. 

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The fuel price increase in Nigeria has affected the MTN Group’s revenue, the IT News Africa has reported.

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