The sale of government's 39% shareholding in Telkom looks to be off the books, with the telecoms operator withdrawing a previous cautionary announcement on the matter yesterday.
On 30 August, Telkom confirmed via the JSE's Stock Exchange News Service (SENS) that government was considering selling part of its stake in the telco, after speculation that government was planning to use the sale to raise funds to bailout struggling South African Airways (SAA).
Telkom said at the time that government was "considering various strategic options with regards to partially reducing its current approximate 39% shareholding in Telkom".
Yesterday, the telco told shareholders it was "not aware of any current decision taken by the government with regards to its shareholding".
"Therefore, Telkom is withdrawing the cautionary announcement and caution is no longer required to be exercised when dealing in Telkom's securities," it said on SENS.
Telkom's share price took a slight dip on the back of the news, decreasing 1.65% to close at R55.50 per share on Thursday. The telco's share price has fallen almost 25% year-to-date.
National Treasury is quoted in the Business Day saying the Telkom sale was no longer "the preferred option" to finance SAA's debts and other options were being explored.
More clarity on the matter is expected when finance minister Malusi Gigaba tables his medium-term budget policy statement in Parliament on 25 October.
In 2015, government sold its almost 14% stake in Vodacom to the Public Investment Corporation for around R28 billion to raise funds for power utility Eskom, which needed a R23 billion bailout.
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