South Africa’s Telkom has ditched a prospective deal with South Korean KT Corp to sell its ISP unit iWayAfrica.
A Telkom spokesperson said that the company had been holding talks with KT Corp but these ended months ago with no transaction being…
South Africa’s Telkom has ditched a prospective deal with South Korean KT Corp to sell its ISP unit iWayAfrica.
A Telkom spokesperson said that the company had been holding talks with KT Corp but these ended months ago with no transaction being concluded. He did not disclose why the discussions fell through, or whether iWayAfrica is still up for sale.
KT’s attempt to acquire iWayAfrica seemed imminent earlier this year with reports suggesting it was close to making the acquisition.
At the time, a KT Corp spokesperson confirmed it was interested in iWayAfrica but added that nothing had been decided yet.
The failed bid is another setback for KT, which has been looking to expand abroad, principally in Africa, as it struggles to grow further in its saturated home market.
In June last year it failed to acquire a 20% stake in Telkom after the South African government blocked the deal.
More recently, in April, the Korean company withdrew from a bidding process to acquire a 53% stake in Vivendi’s Maroc Telecom, citing valuations differences.
It has had some success in Rwanda, however, entering a joint venture company with the government to provide 4G LTE wholesale infrastructure for MVNOs in the country.
Separately, KT Corp CEO Lee Suk Chae offered to resign a few days ago following corruption allegations made against him.
A probe was recently launched after a South Korean civic group reportedly filed charges against the CEO in February and October this year. The group alleges that Lee has made poor investments decisions and sold some of KT’s properties too cheaply. The CEO denies the allegations.
