/ 2 June 2008

Sexwale bids R90-billion for Telkom

Former politician turned businessman Tokyo Sexwale’s company has launched a R90-billion conditional bid for fixed-line operator Telkom, a newspaper reported on Sunday.

Sexwale, an ally of ruling African National Congress president Jacob Zuma, turned down a nomination to be part of the ruling party’s top six officials but remains a supporter.

He has become a tycoon through the government’s black economic empowerment policy, which is aimed at transferring wealth to black South Africans.

The Business Times reported Sexwale’s company Mvelaphanda Holdings had the financial backing of New-York listed private equity firm Och-Ziff.

The paper said Mvelaphanda and Och-Ziff are involved in an international company, African Global Capital, which has raised billions of dollars to invest in mining, energy and other strategic assets in South Africa and the continent.

Telkom has said it would not consider the sale of the group or any of its units or joint ventures without a strategic rationale.

The group in March turned down an approach from United Arab Emirates-based Oger Telecoms saying it was not in the interest of shareholders. – Reuters 2008.