Telkom may shut down its pay-TV unit Telkom Media, a local newspaper reported on Tuesday.
Business Report cited an unnamed source as saying Telkom Media shareholders would probably meet in the next few weeks to discuss the possible winding up of the business.
”We are not in a position to deny or confirm anything at the momemnt,” said Telkom spokesperson Ajith Bridgraj. Telkom Media was not immediately available for commment.
Chris van Zyl, spokesperson for Telkom Media, told Business Day newspaper the company could not be closed without a formal notification from the shareholders, of which Telkom is in the majority.
Telkom, which has a 66% stake in Telkom Media, said last year it was in the process of selling its investment, and had identified a potential investor to take over a substantial portion of the stake.
According to media reports potential suitors included Chinese company Shenzen Media, the state pension administrator Public Investment Corporation and unlisted Mvelaphanda Holdings.
Telkom had hoped launching a pay-TV service would help it offset falling revenue at its core fixed-line business, but it has failed to get the project off the ground.
Business Day said on Tuesday about 100 staff members would be affected if Telkom Media does close.
Shares in Telkom were trading 0,43% higher at R105,75 by 7.36am GMT, lagging the JSE Securities Exchange’s blue-chip Top-40 index, which was 0,89% higher. – Reuters