Telkom withdraws cautionary on government possibly selling its stake

Telkom share rose to a two-week intraday high on Thursday, after the telecoms group withdrew its cautionary notice.

The cautionary related to a potential sale of the government’s 39% interest in the company, valued at R11.8bn at current prices.

Cash-strapped state-owned airline SAA was tipped to be in line to benefit from the proceeds of the sale.

"Telkom is not aware of any current decision taken by the government with regards to its shareholding," the company said in Thursday’s statement.

The share price was up 0.62% to R56.81 in midmorning on the JSE, giving Telkom a market value of R29.8bn.