Telkom no longer on ‘chopping block’
Analysts say this may lead to positive rerating of group as the state is no longer hard-pressed to sell
Telkom shareholders could be the next beneficiaries of President Cyril Ramaphosa’s “new dawn”, as an improving economic outlook means the state is no longer hard pressed to sell strategic assets. Telkom CEO Sipho Maseko said on Monday that the government was no longer actively looking to offload some or all of its shares in the partially state-owned telecommunications company. Analysts said the news could lead to a positive rerating of the company’s share price and that it could be construed as another sign that the worst may be over for the South African economy. Talks about a partial share sale, which Telkom first warned shareholders about in August 2017, came as the government was searching for funds to prop up ailing national carrier South African Airways. The state directly owns 40.5% of Telkom, while the Government Employees Pension Fund holds another 11.8%, according to Bloomberg data. Maseko said talks about a share sale had started at a time when SA was facing a ratings dow...
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