Telkoms\u2019 reported delisting from the JSE was a market rumour based on announcements by unions who were against the deal, according to the Public Investment Corp (PIC), a major investor in the group.<\/p>\n
Government owns 39.8% of Telkom, while the Public Investment Corp (PIC), which invests state employees\u2019 pensions, holds a 10.9% stake in the telecoms operator.<\/p>\n
Citing a source close the communication department,\u00a0Business Day newspaper reported that\u00a0\u00a0government could delist and nationalise the struggling telecoms operator, while the\u00a0Communications Workers Union (CWU) in June, stated that Telkom should be under state ownership.<\/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 JSE,\u201d the nation\u2019s leading business daily quoted the source as saying.<\/p>\n
Maqhawe Dlamini, head of equities at the PIC told BusinessTech: \u201cThe delisting of Telkom was a market rumour based on the subsequent pronouncements by unions against the deal.\u00a0 We are not convinced that it is the intention of government at this stage, seeing that it is yet to consider the full spectrum of strategic options that Telkom will be presenting to them.\u201d<\/p>\n
“We believe that Telkom and government are working together to close the process gaps that arose as a result of Telkom not presenting more than just one option to government, which would have assisted it in the decision making- process for a higher conviction call by government. We see that as very prudent by government and have all the confidence that the both parties are working together to come up with a mutually beneficial solution.”<\/p>\n
“We unfortunately cannot take part in that process as the lapsing of the A and B share structure put paid to our strategic relationship with government, thereby rendering us the ordinary shareholder that we are today. Any PIC involvement in the process underway, post that event, would have raised ethical issues around selective disclosure of information.”<\/p>\n
Related article<\/strong><\/p>\n Telkom sell-off continues amid delist rumours<\/a><\/strong><\/p>\n Telkom performance concerns large shareholder<\/a><\/strong><\/p>\n Telkom tanks nearly 5% to new low<\/a><\/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