From BDLive

Telkom is eyeing acquisitions that will provide scale to its business, especially its mobile business, chairman Jabu Mabuza said at its annual general meeting on Wednesday.

All resolutions proposed were passed by the requisite majority of shareholders.

Telkom undertook a restructuring programme to prop up its slipping market share and streamline its cost structure.

One of its plans, however, was scuppered last week when the Competition Commission recommended that its infrastructure-sharing deal with MTN be prohibited.

The deal would have significantly reduced the operating costs and capital expenditure of its mobile unit, Telkom Mobile.

Telkom has already indicated that it is interested in bidding for Cell C, which has received bids from six companies.

Cell C “may be part of our solution”, Mr Mabuza told Bloomberg on Wednesday.

“Our mobile business is one that needs scale, so we’ll continue to look for opportunities,” he said.

Cell C’s majority owner, Oger Telecom, has received bids from six local and international companies. It is not clear whether Telkom is one of the companies that have submitted bids.

Telkom CEO Sipho Maseko said that in seeking new opportunities the group was open to casting its net wider and looking beyond SA’s borders.

“We need to resolve the scale issue and you resolve it either by buying someone else or investing in expanding (the) network,” Mr Maseko said.

Read more at BDLive