NONCORE ASSETS
Sale of state Telkom stake unlikely to hit operations, says CEO Maseko
The state’s proposed sale of its stake in fixed-line group Telkom will probably not affect operations, says CEO Sipho Maseko. The government owns 39% of Telkom and was said to be considering selling the shares to bail out troubled South African Airways (SAA). Its stake in Telkom is worth about R14bn. Asked whether Telkom would consider a stock buy-back, Maseko said Telkom would consider its options, including a buy-back, once there was a formal process. It emerged in Parliament on Wednesday that the state sees the sale of noncore assets as the only sustainable way to support SAA. Responding to questions from opposition parties, Deputy President Cyril Ramaphosa said the government continued to discuss which assets were strategic. "If that proposition [selling the Telkom stake] comes up, Parliament will deal with it," said Ramaphosa. Telkom management, led by Maseko, had substantially reduced costs, which were a drain on the group. The business recorded improved performance in the yea...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.