Telkom shares off 5.3%, awaits fate

Shares in Telkom declined more than 5% on the JSE in late afternoon trade on Thursday (20 September) as the group awaits clarity on its future.

The drop follows a meeting between the Department of Communications (DoC) and the South African Cabinet on Wednesday (19 September) to determine a way forward for the group.

Telkom also warned in a trading update that its headline earnings per share from continuing operations for the six months ending September 2012 are expected to be at least 65% lower than the prior comparative period.

HEPS from continuing operations for the six months ended September 2011 stood at 191.7 cents, 35.5% lower than in 2010.

By 16:15, Telkom’s shares declined 5.37%, or R1.10, to R19.40 on the JSE.

Communications minister Dina Pule met with cabinet on Wednesday to present a list of three strategic options for Telkom, having blocked a deal between the incumbent telecoms provider and Korea based KT Corp in June.

On Thursday, the DoC issued out the following statement on various social networks including Twitter and its Facebook page:

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