JOHANNESBURG, June 19 (Reuters) – The South African
government, a top shareholder in Telkom, could delist
and nationalise the struggling telecoms operator, Business Day
newspaper reported, citing a source close the communication
department.
“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 nation’s leading business daily quoted the
source as saying.
Earlier this month, the government, which together with the
state-run pension fund hold over 50 percent of Telkom, rejected
KT Corp’s $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.
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 ruling African National Congress
view as an arm of government.
The ANC last year tried unsuccessfully to roll back approval
for Wal-Mart’s $2.4 billion acquisition of retailer
Massmart.
A communication department spokesman could not be
immediately reached for comment.
(Reporting by Tiisetso Motsoeneng; Editing by Hans-Juergen
Peters)
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