All data is delayed
See More

Telkom soars on nationalisation report

Jun 19 2012 11:18

Company Data


Last traded 116
Change 2
% Change 2
Cumulative volume 1052138
Market cap 0

Last Updated: 30-11-2015 at 05:00. Prices are delayed by 15 minutes. Source: McGregor BFA


Last traded 62
Change -1
% Change -2
Cumulative volume 1198429
Market cap 0

Last Updated: 30-11-2015 at 05:00. Prices are delayed by 15 minutes. Source: McGregor BFA

Related Articles

Telkom nationalisation on the cards

Moholi: We have a plan

SA seems ‘closed for business’

Govt rejects R3.3bn Telkom-KT deal

Investors hang up on Telkom

Union welcomes sinking of Telkom deal


Johannesburg - Telkom [JSE:TKG] shares surged nearly 8% in early trade on Tuesday after a report said its top shareholder, the South African government, could be planning to buy the outstanding stock in the struggling company.

Telkom, in which the government owns more than a 50% stake jointly with the state-run pension fund, was up 3.8% at R21.14 by 09:53 GMT, on track for its biggest percentage gain in more than three months.

Citing a source close to the communication ministry, South Africa’s leading financial daily Business Day said the government could fully nationalise Africa’s biggest fixed-line phone operator.

“The government is looking for a way to direct Telkom to meet its development agenda without being hampered by the rules of the JSE,” the daily quoted the source as saying, referring to the Johannesburg Stock Exchange.

Siya Qoza, a spokesperson for the communication ministry, said the Business Day report was “not close to the truth” but added the ANC was best placed to comment.

“I don’t know what they want to do with Telkom but as far as I know it’s not government policy,” Qoza said.

ANC spokesperson Jackson Mthembu said: “I am not aware of Telkom being in any policy documents but anything is possible at the policy conference”.

The ANC has a major policy meeting next week and has been pushing for greater state control over Africa's largest economy.

Earlier this month, the cabinet turned down KT Corp's  $385m offer for a stake in the company, saying it was a strategic asset in its plan to roll out internet services to all South Africans by 2020.

The deal with the South Korean firm would have diluted the government holding to less than 50%.

Analysts have said the rejection of KT’s offer underscored the apparent determination of the government not to cede control of a company that many in the ANC view as an arm of government.  

The ANC last year tried unsuccessfully to roll back approval for Walmart Stores's $2.4bn acquisition of retailer Massmart Holdings [JSE:MSM].

Telkom, which last week posted a one-third drop in full-year profit and suspended dividend payments for first time since 2003, has been hit by hefty start-up costs at its new mobile arm and falling sales from its mainstay fixed-line phone business. 

telkom  |  nationalisation


Read Fin24’s Comments Policy publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Company Snapshot

We're talking about:


Marketing is a big concern in SA's small business community, followed by a lack of confidence and partnering with the wrong people, according to a survey.

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

The 25 basis points interest rate increase is:

Previous results · Suggest a vote