AFRICAN TELECOMS WINS AFRICAN LAKES BID WITH INCREASED CASH OFFER

Mergers, Acquisitions and Financial Results

Last Friday African Telecoms Company announced that its increased cash offer had secured it control of 52.66% of African Lakes. The revised offer of £18.50 in cash per share values the existing issued ordinary share capital of the company at £5.04 million.

Commenting on the revised offer, Richard Bell, Director of African Telecoms Company said:”The revised offer of £18.50 per share in cash represents a significant increase over our original offer and I am delighted that it has won the support of African Lakes’ major institutional shareholder. We are looking forward to implementing our exciting plans for building a pan-African ICT infrastructure.”

Telkom has refused to say whether it was bidding for the company: “The reports linking Telkom SA as a bidder for Africa Online are speculative and Telkom will not comment on media speculation,” the fixed-line operator told ITWeb. The company has not really got the hang of media relations as it was actually the competitor bidder for company. It was seeking to secure an irrevocable share offer but was clearly unable to convince the company’s biggest institutional shareholder. Comment on its acquisition plans for African Lakes were universally sceptical and hostile in South Africa.

In a further blow to its acquisition plans, it has been unable to agree a price with Uganda’s incumbent utl and it now longer has an exclusivity on the deal. The company will actually have to succeed with one of its acquisitions soon or potential acquisitions will lose faith in its ability to close any deal.