Telkom shareholders approve Vodacom sale

Telkom shareholders have agreed to sell 15% of the company’s stake in cellphone company Vodacom to the United Kingdom-based Vodafone Group, Telkom said on Friday.

The R22,5-billion deal will usher in a new era for the Telkom Group, chief executive officer Reuben September said in a statement.

”We have identified a need to improve our competitive ability in the mobile space, but have been prohibited from doing so by the shareholders’ agreement, which had placed severe restrictions on us,” he said.

The sale will result in Telkom listing its remaining 35% in Vodacom and distributing the shares to Telkom shareholders by way of an unbundling.

September said the shareholders’ agreement had prevented Telkom from offering mobile voice services in South Africa, and expanding into Africa, south of the equator.

”The rapid pace of change in communications technology meant that the inability to deliver mobile and converged services had blunted Telkom’s competitiveness.

”Yesterday’s shareholders’ approval means that we are now truly free to compete so that we are able to maintain our leadership position in South Africa while building a strong footprint on the continent,” he said.

Telkom would now focus on executing strategies in mobile services, integrated solutions and the providing converged fixed-line, mobile and data solutions.

”With the proceeds from the sale of our Vodacom stake, Telkom will be able to speed up investments to execute its strategy,” September said. — Sapa

We make it make sense

If this story helped you navigate your world, subscribe to the M&G today for just R30 for the first three months

Subscribers get access to all our best journalism, subscriber-only newsletters, events and a weekly cryptic crossword.”

Related stories

WELCOME TO YOUR M&G

Already a subscriber? Sign in here

Advertising

Latest stories

The Opera Virgin attends ‘The Marriage of Figaro’

Opening one’s mind to new artistic disciplines could provide enlightenment to glorious new pursuits.

What’s behind the vulture poisonings in Kruger and Chobe parks?

People poison vultures for various reasons, including a belief that they can see into the future and to stop authorities from being alerted to poaching

Kenya’s Ruto declared president-elect amid results chaos

Independent Electoral and Boundaries Commission (IEBC) chairman Wafula Chebukati said Ruto had won almost 7.18 million votes (50.49%) in the August 9 vote, against 6.94 million (48.85%t) for his rival Raila Odinga.

Kenya vote chief declares Ruto president-elect

The deputy president has been declared the winner of the close-fought election, despite several commissioners rejecting the results
Advertising

press releases

Loading latest Press Releases…
×