Telkom and Broadband Infraco merger likely: report
Broadband Infraco and Telkom are likely to merge, according to a report by BusinessDay.
The report stated that Broadband Infraco supports the government’s plan to merge it with Telkom, and that the company wants to receive financial assistance “as soon as possible”.
BusinessDay stated that Broadband Infraco’s corporate plan for 2016-21 has been tabled in Parliament, showing that its executives believe the company must be acquired to “preserve its value and assets”.
The company lost R245 million in 2014-15, according to the report.
Telecommunications and Postal Services Minister Siyabonga Cwele recently stated that the two companies were in discussions over working together as part of the government’s plan to restructure state entities.
The merger would take 12-18 months to finalise, stated the report.
Broadband Infraco has 14,676km of fixed-line infrastructure, while Telkom has over 147,000km of fibre.
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