Telkom plans to create a separate and wholly-owned subsidiary to focus on the group's extensive property portfolio. A spokesperson from the telecoms operator confirmed the plans with ITWeb via e-mail.
"Telkom's property assets have not previously been commercialised and offer the group an additional external revenue stream," the group says.
According to Bloomberg, this includes telecommunication tower assets, and the property unit could in future be listed on a stock exchange. The telecoms operator has one of the largest real estate portfolios in South Africa and CEO Sipho Maseko reportedly wants it to contribute more to earnings.
Telkom told ITWeb that more detail regarding the development of the subsidiary would be provided at the group's year-end results announcement in early June.
The Telkom stock price closed slightly down yesterday at R72.18 per share, with the company's market capitalisation sitting at a little over R38 billion.
Maseko took over as CEO in April 2013, when the stock was worth around R14.80 a share, and since his appointment, the stock price has risen by almost 388% to date. The telco's turnaround strategy in recent years has seen it cut costs and staff, and the mobile business is gaining subscribers and growing revenue, while fixed-line revenue continues to decline.
The creation of the property business is reportedly part of the next phase of Maseko's strategy, which will involve an examination of each of the company's operations.
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