Telcom CEO

Telkom is facing difficult times. However, CEO Serame Taukobong has insisted that the company “does not need a knight in shining armour” to come riding to its rescue.

Interest from Consortium and MTN Group

In a TechCentral Show (TCS) interview with Taukobong, the Telkom boss provides his views on the interest received from a consortium. This consortium includes former CEO Sipho Maseko and Mauritius-based Axian Telecom. MTN Group has also signalled that it may still be interested in a deal.

Previous Talks with MTN Group

MTN walked away from early-stage talks with Telkom last year. This was after Telkom’s board agreed to entertain a rival offer from wireless broadband provider Rain. The rain had sought a merger with Telkom.

MTN Group’s Statement

During Telkom’s annual results presentation to investors this week, MTN issued a statement. In it, they said that a deal makes sense for shareholders of both entities.

Interview with Telkom CEO

In the interview at the JSE in Sandton, Taukobong answered several pressing questions. These included:

  • Without corporate action, can Telkom survive and thrive in the longer term?
  • How supportive is government towards a partial or full sale of Telkom?
  • How will market consolidation likely happen and can South Africa’s mobile market sustain four infrastructure competitors in Telkom, Vodacom, MTN and Rain?
  • Are the retrenchments at Telkom over, or is there still more pain to come?
  • What’s the prognosis for capital expenditure at Telkom, and why did mobile spending outpace revenue growth?
  • What’s hurting Telkom’s free cash flow (a negative R2.7-billion in the 2023 financial year), and what is management doing to address the problem?
  • Does it still make sense for Telkom to own an IT services business?
  • What are the plans to unlock shareholder value, especially in Gyro?

Don’t miss the discussion!

Watch the video below:

By Shamiso Miracle

Shamiso Miracle completed her degree in journalism and media studies at the University of Zimbabwe before honing her skills at Savanna News. She then went on to work at iHarare News, becoming a voice for everyday SA citizens who wanted to share their stories. When she's not writing news that entertains and inspires ,Shamiso is an avid reader and a wellness bunny.

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