Deals
Telkom Says South Africa Mulling Sale of Up to $1 Billion Stake
- Phone company says state has ‘various options’ for 39% stake
- Government needs funds to bail out debt laden airline SAA
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Telkom SA SOC Ltd. said the South African government is considering various options regarding its 39 percent stake in the fixed-line operator as it seeks to raise cash to bail out the country’s unprofitable national airline.
The state’s shares in the former telecommunications monopoly are worth about 13 billion rand ($996 million). Lawmakers are in talks with government-owned companies including the Industrial Development Corp. and the Public Investment Corp. to buy as much as 28 percent of the company, people familiar with the matter said last week. It could sell the whole stake if the situation at South African Airways worsens, they said.