Analysts warned that Telkom\u2019s delisting was becoming a more distinct possibility after the group\u2019s shares slid a further 86 cents, or 4.89%, to an all-time low of R16.74 on the JSE in noon trade.<\/p>\n
The latest price trims the telecom group\u2019s a market cap to R8.75 billion, some way off its competitors, with Vodacom at R138.7 billion, and MTN up to R289.59 billion.<\/p>\n
The All share Index was up 0.43% to 34,436 points, while MTN improved 1.79% or R2.70 to R153.90, and Vodacom added 25 cents to R93.21.<\/p>\n
\u201cI am sure we can\u2019t be far off from a delisting, with Telkom\u2019s share price taking the beating,\u201d a dealer at PSG Konsult told BusinessTech.<\/p>\n
On 8 May 2012, Telkom announced that it had reached an in-principle agreement with KT regarding the terms of a venture that would see KT acquiring a strategic equity shareholding of 20% in Telkom by way of a specific issue of shares for cash at a cut price of R25.60 per new Telkom ordinary share.<\/p>\n
However, the group advised shareholders on Friday, 1 June 2012, that the potential strategic venture with Korea Telecom Corporation would not go ahead.<\/p>\n
Christopher Gilmour, analyst at Absa asset management for private clients said that government\u2019s plan for Telkom was the $64,000 question. \u201cTelkom\u2019s deal with KT Corp was probably one of the last chances they had to make a serious play in the market,\u201d he said, adding that by blocking the deal, it opened up a case \u201cto say that government may want to delist the thing (Telkom).\u201d<\/p>\n
In June,\u00a0Business Day newspaper reported that\u00a0government, a top shareholder in\u00a0Telkom<\/a>, could delist and nationalise the struggling telecoms operator, citing a source close the communication department.<\/p>\n \u201cThe government is looking for a way to direct Telkom to meet its development agenda without being hampered by the rules of the\u00a0JSE<\/a>,\u201d the nation\u2019s leading business daily quoted the source as saying.<\/p>\n However, government\u00a0reportedly denied that it has any plans to buy up more shares in the struggling encumbent.<\/p>\n The government owns 38.9% of Telkom \u2014 51% if the Public Investment Corporation\u2019s stake is included.<\/p>\n Related articles<\/strong><\/p>\n Telkom nationalisation on the cards<\/a><\/strong><\/p>\n Government squashes Telkom buy-out talks<\/a><\/strong><\/p>\n Friday 13th hits Telkom<\/a><\/strong><\/p>\n Telkom shares tank on KT Corp deal block<\/a><\/strong><\/p>\n Telkom, Korea Telecom transaction not going ahead<\/a><\/strong><\/p>\n Telkom shares slump 5% as investors seek KT Corp clarity<\/a><\/strong><\/p>\n Telkom agrees KT Corp deal at cut price<\/a><\/strong><\/p>\n