TELECOMMUNICATIONS:
Government could sell part of its Telkom stake
Telkom has SA’s biggest telecommunications network infrastructure that also covers remote area
The government is considering selling a portion of its shares in Telkom to a state-owned investment entity in a deal that will ensure that it retains control of the fixed-line group. The government owns 39% in Telkom and is weighing options to dispose of some of its shares to raise money for the ailing state-owned airline, South African Airways. Speaking on the sidelines of Telkom’s Southern Africa Telecommunications Networks and Applications conference in France last week, Telecommunications and Postal Services Minister Siyabonga Cwele said that as Telkom was a strategic asset, the government was considering selling it to another state-owned entity (SOE). "We don’t want a total loss of the business … Telkom is a high-value entity," he said. "We also want to be able to buy back the shares in future," he said. The reason for Telkom being targeted was not "because we think it is not strategic. It is easy to dispose [of]." "In principle, there is no objection for any asset to be dispos...
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.