Katlego Sekhu

On Business Update today, Gugulethu Mfuphi, spoke to Sizwe Dhlomo and Sol Phenduka about Telkom which continues to face financial challenges, declining an offer from a consortium to buy 35% of the business.
In addition, she briefly touched on what they will be discussing on tonight’s Kaya Biz, where they will look at potential economic implications around insurance pertaining to natural disasters, at the back of the earthquake that rocked Joburg on Sunday morning.
The offer from Telkom was made at a 20% premium to its share price which was trading at around R38 per share and the offer they made was around R46 per share at the time of making this offer to the board.
Gugu says “The company is facing major problems in terms of its balance sheet.” This comes after Telkom announced that they had impairments of around R13 billion – which are actually significantly higher than their market cap.
The Kaya Biz host says this raises questions as to “what the sustainability and future of Telkom will look like without the assistance of external shareholder participation.”
In a statement issued by Telkom, the telecommunications provider requested the consortium to provide “further clarity on several matters, including the proposed offer price and certainty of funding.”
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