Government to dispose of a ‘portion’ of its Telekom stake

26 Oct 2017

The South African government is planning to sell a ‘portion’ of its 39.3% stake in Telkom to ensure the country’s fiscal expenditure ceiling is not breached by the additional funding needed to recapitalise South African Airways (SAA) and the South African Post Office. Finance minister Malusi Gigaba said: ‘We have decided to dispose of a portion of government’s Telkom shares. We do not take this decision lightly, but we have had to in order to maintain the credibility of the expenditure ceiling,’ adding that the government will have the option to buy back the shares at a later date.

TeleGeography notes that the South African government has a 39.3% stake in Telkom, making it the company’s largest shareholder by some distance, while the Public Investment Corporation (PIC) owns 11.6% of the company’s share capital; none of the other shareholders had more than 5% of the company.

South Africa, Telkom South Africa