OWN CORRESPONDENT, Johannesburg | Tuesday 6.00pm.
GOVERNMENT said on Tuesday it plans to float majority state-owned Telkom in 2001 and is proceeding with plans to sell off a stake to a black-owned partner and company employees.
The cabinet sub-committee on the restructuring of state assets said in a statement it has approved the start of the process for an initial public offering of shares in Telkom and agreed for the entity to be listed in 2001.
In 1997, government sold a 30% stake in Telkom for $961-million to a consortium of SBC Communications and Telekom Malaysia. The group’s monopoly lasts until 2003.
The sub-committee said it has approved the sale of two percent of Telkom to its employees for R310-million and said it will divest a further t3% to one of four potential black empowerment partners.
The four partners shortlisted for the 3% stake worth R680-million rand are Ucingo Holdings, Mehaleng Investment Holdings, New Horizon Group and Akulalwa.