Telkom Media closes doors

Johannesburg - JSE-listed fixed-line telecommunications operator Telkom will wind up its media subsidiary, Telkom Media, after failing to find a buyer for its stake in the business, it said on Wednesday morning.

In a statement release on the Stock Exchange News Service, Telkom said "an extensive process to identify potential buyers of Telkom's interest in Telkom Media has proved unsuccessful."

It intends calling the necessary shareholder meetings to seek approval to wind up Telkom Media. "It is anticipated that the meeting will be held within the next 30 days," the company said.

Telkom received a pay-TV licence in August 2008, and had planned on offering subscription-based television services via satellite, broadband networks (IPTV) and the web. At the time, Fin24.com reported that Telkom's initial estimates said it budgeted on signing up at least 400 000 subscribers within 10 years.

Telkom, which has a 66% stake in Telkom Media, has been looking offload its stake in the fledgling operation since March 2008.

The minority shareholders in the operation include Given Mkhari's MSG Afrika Group, WDB Investment Holdings and Anant Singh's Video Vision Home Entertainment.

Telkom said that since the decision to reduce its shareholding in Telkom Media, it had cut operational expenses and commitments to a minimum. "To date, Telkom has fully impaired all of its investments in Telkom Media," it said.

At 10:30 on Wednesday, Telkom shares were trading 0.5% lower at R102.48 apiece.

- Fin24.com