South Africa considers Telkom nationalisation - report

News Broadband South Africa 20 JUN 2012
South Africa considers Telkom nationalisation - report
The South African government, a top shareholder in Telkom, could delist and nationalise the struggling operator, Business Day reported, citing a source close to the communication department. The daily said the government is looking for a way to direct Telkom to meet its development agenda without being hampered by the rules of the Johannesburg Stock Exchange. The government, which together with the state-run pension fund hold over 50 percent of Telkom, had earlier rejected KT's USD 385 million offer for a stake in the company, saying the firm was a strategic asset in its plan to roll out internet to all South Africans by 2020. The deal would have diluted the government holding to less than 50 percent.

Categories:

Fixed

Companies:

KT,  Telkom

Countries:

South Africa

Tags:

Shareholders & subsidiaries, Wholesale, Government policy, M&A buyouts & divestments

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