SAA BAIL-OUT
CAROL PATON: Ambivalence on sale of Telkom stake the elephant on the stoep
"Who knows which animal will emerge as king this time?"
So many things about the government’s sale or nonsale of its Telkom stake don’t add up that we shouldn’t be surprised if an elephant turns up on the doorstep. The Elephant Consortium, you might remember, was the name of the ANC-backed group that bagged the last chunk of Telkom for sale, with the generous help of the Public Investment Corporation (PIC), when the Malaysian/US equity partner sold its 15% share in 2005. The PIC, run then by Brian Molefe, funded the transaction and warehoused the shares. The first strange thing is why the Treasury canned the deal when it so obviously needs the cash. With only two weeks to go before the medium-term budget policy statement, there is little time and few options for the government to raise the R13bn needed to bail out South African Airways (SAA). There are few options, and almost as soon as the bail-out was mooted, it was speculated that Telkom was the obvious target. Fortuitously, the government’s 39% stake is worth about R13bn, more or les...
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.