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Johannesburg - South Africa's telecoms regulator on Friday demanded that Telkom, the country's biggest telecoms operator, get approval to sell its stake in mobile firm Vodacom, raising doubt over Vodacom's listing planned for Monday.
But the mobile firm said the listing was still on track.
Vodacom has been due to list, in one of South Africa's biggest share issues, after fixed-line operator Telkom unbundled its 35% stake to shareholders subsequent to selling a 15% stake to joint owner Vodafone.
But regulator Icasa demanded that Telkom seek its approval to sell the Vodacom stake, despite having said in April that it was not necessary. The sale of the stake is an integral part of the Vodacom listing.
"Now no one knows what's really going on," Irnest Kaplan of Kaplan Equity Analysts said. "It's almost like creating uncertainty, which is not a good thing because it was supposed to be a professional situation."
Telkom shares, which had been trading more than 4% higher, turned negative after the announcement. It closed 0.44% down at R112.15. The rand, hard hit by a new wave of global risk aversion, fell further after the news.
The regulator's change of opinion followed an application made to the court by South Africa's powerful labour federation Cosatu to set aside Icasa's initial decision that the sale of the stake could go ahead.
The communications authority and Cosatu are still awaiting the court's decision, but Icasa said it was concerned that proceedings will only start after the deal has taken place.
Transactions of this nature should take place in an environment conducive to regulatory certainty, Icasa said.
It added that it will hold public hearings by mid-June on the sale of the Vodacom stake to Vodafone.
But Vodacom said the listing on Monday was still on track.
"Whilst Vodacom is seeking legal council, until a decision to the contrary is made, the listing is on track to take place on Monday," Vodacom spokesperson Dot Field said in a statement.
Cosatu, close to new President Jacob Zuma who took office last week, said on Friday it was still considering legal action to prevent Vodafone from purchasing the stake in Vodacom.
Telkom declined to comment.
- Reuters
