Govt said to have reduced Telkom SA’s shareholding to below 50%

27 Mar 2017

The South African government’s direct and indirect shareholding in domestic network operator Telkom has reportedly dropped to below 50%, TechCentral writes. As of September 2016 (latest published data by the company), Telkom was majority-owned by the South African government, with 39.3% of its shares directly held by the Department of Telecommunications and Postal Services (DTPS), while state-owned asset manager the Public Investment Corporation (PIC) owned 11.6% of the shares. However, according to a public disclosure by the PIC on its proxy voting record, the company’s shareholding in the telco dropped to 7.7185% by August 2016, down from 11.930% year-on-year, hinting that the government’s combined voting stake in Telkom may have dropped to below the threshold for guaranteeing control of the company. Previously, the government had a ‘golden share’ in the operator, which entitled it to ‘a reservation of certain rights in the control of Telkom’, though it expired in 2011 (eight years after the telco was listed on the Johannesburg Stock Exchange [JSE]).

South Africa, Telkom South Africa