Confusion as Telkom awaits fate

Telkom’s fate is yet to be tabled before cabinet, a government spokesperson has told BusinessTech.

Shares in Telkom dipped back below R16 on Thursday (21 February), ending the week at R15.85, and giving the listed telecoms provider a market cap of R8.25 billion.

Having blocked a deal between Telkom and Korea based KT Corp in June last year, cabinet asked the minister of communications, Dina Pule, to report back to it about all the options that were available for Telkom.

The DoC confirmed in September that a shortlist of three strategic options for Telkom had been presented to cabinet.

“Unfortunately, nothing has been tabled in Cabinet yet on Telkom.  It might be better if you could interact directly with the DoC for an update and when they intend to table anything,” a cabinet spokesperson said in an email to BusinessTech late last week.

The DoC did not respond to questions raised by BusinessTech.

In a statement by Pule on Telkom at the end of October, the minister said:

“Indeed we have been working on a revised Telkom strategy. Part of this Telkom strategy – started in the 2006/07 investment period – is already under implementation.”

“The rest of that strategy, which pertains to broadband rollout and possible partners for fixed line and mobile telephony, will be spoken to by March 2013.”

In January, the minister said in a parliamentary response that cabinet was still mulling over the recommendations tabled by the DoC and would provide feedback at the “appropriate time”.

Telkom, meanwhile, is yet to announce a replacement for current CEO, Nombulelo Moholi, who announced her resignation in November 2012 and will leave the company in April 2013.

More on Telkom and the DoC

More confusion over Telkom future

Telkom future in cabinet hands

Telkom options not tabled before Cabinet

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Confusion as Telkom awaits fate