Telkom options not tabled before Cabinet

Cabinet did not discuss Telkom’s fate at the latest meeting on Wednesday (19 September 2012), a spokesperson told media at a post-cabinet briefing on Friday (21 September 2012).

This is despite the Department of Communications (DoC) saying in a statement last week that the Minister of Communications, Dina Pule, would report back on the options for Telkom at this week’s cabinet meeting.

In the statement, the DoC said that Pule and the Inter-Minesterial committee have worked “very hard” with government officials to distill the list of options down to three.

Cabinet blocked a deal between KT Corp, a Korean telecommunications operator, and Telkom on 30 June 2012.

Following this, Cabinet tasked Pule to report back within three months with all the options available for Telkom after the deal was canned.

It is understood that Pule was in discussions about Telkom on Wednesday, though a spokesperson said the three options previously mentioned by the DoC were never tabled before Cabinet.

In a statement issued on Thursday, the DoC said that “the options for Telkom are following Cabinet processes” and that “the Minister is unable to provide additional comment at this stage”.

The spokesperson said that they don’t have the reasons why the options weren’t presented to Cabinet, adding that “maybe it will come later”.

In mid-morning trade on the JSE, Telkom’s shares dropped a further 6.30%, or R1.22, to R18.15.

This after having lost 5.51% to R19.37 on Thursday (20 September) after warning of a big drop in its half-year profit to the end of September.

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Telkom options not tabled before Cabinet