The government on Tuesday denied that the Telkom share offer was discriminatory, saying all South Africans were eligible to register for the offer.
It said in a statement the share offer had been structured in such a way that all South Africans had an equal opportunity to register for, and to purchase, shares in the telecommunications company.
“Everyone has the right to register for, and to purchase shares. There is nothing to prevent any South African — regardless of race, gender or ability — from registering for or buying shares under either the General or the Khulisa offers,” said Dr Eugene Mokeyane, the head of the IPO Office in the Department of Public Enterprises.
He explained that the Khulisa offer had been introduced to ensure that lower income groups, who were predominantly historically-disadvantaged, could apply for shares. Historically-disadvantaged South Africans would get preference in the allocation of these shares. The offer, however, had a ceiling of R5 000 per applicant and R50 000 per stokvel.
“The IPO Office has carefully considered the Khulisa offer to ensure redress and to encourage lower income earning South Africans and historically disadvantaged individuals the opportunity to invest in shares on the JSE Securities Exchange South Africa. For this reason, we have stated that we will give preference in the event of over subscription to historically-disadvantaged South Africans — to give them an opportunity they may not have had in the past.
“I would like to emphasise that the Khulisa offer has a ceiling of R5 000 per applicant which limits the participation of high net worth individuals through the Khulisa offer — as will the fact that people who purchase shares through the Khulisa offer will not be able to sell them for three months,” Mokeyane said.
He emphasised that the government was committed to continuing with the public listing of Telkom on the JSE Securities Exchange South Africa and the New York Stock Exchange before the end of the current fiscal year. – I-Net Bridge