Telkom: $3bn Asian offer for towers denied

Telkom had not received a proposal from a south-east Asian company for its cellular towers business nor a $3 billion (R33bn) investment, Africa’s largest fixed-line operator said yesterday. Website BusinessTech reported on Tuesday that there was a proposal to buy and expand Telkom’s mobile infrastructure with a total investment of $3bn, citing a document it had obtained. “Telkom would like to correct statements that have been widely published regarding the sale of its tower infrastructure,” the company said in response to questions. “The company has not received any proposal from a south-east Asian company for the sale of its mobile towers business or an investment of $3bn.” Telkom shares fell as much 2.5 percent before closing 0.89 percent higher at R34.15. The stock had gained 2.6 percent after the BusinessTech report on Tuesday. Telkom is struggling to revive revenue among consumers who favour data-enabled smartphone devices. The company said in November last year that it was in talks with competitors to share infrastructure at its wireless business to help curb costs. “Telkom continues to review its operations in an effort to stabilise the business and unlock value,” the company said yesterday. Telkom “is therefore engaging with various parties to consider best options for the business”. – Bloomberg