Telkom CEO insists company does not need a “knight in shining armour”

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: