The Independent Communications Authority of SA (ICASA) has told Telkom to submit all documentation regarding the sale of its broadcasting arm, Telkom Media.
The regulator seems a little concerned about how Telkom made the sale of its media business to Chinese broadcaster Shenzhen Media SA. In a public statement, ICASA says Telkom must hand over all shareholder information of Shenzhen and all the necessary documentations relating to the transaction.
ICASA seems primarily concerned that Shenzhen does not have the local shareholding required by law to take up Telkom Media. This is despite the fact that Telkom has assured the regulator that only 20% of Shenzhen Media SA is in foreign hands.
According to the statement, once ICASA has received all the documentation relating to the sale, it will make an announcement. The regulator has also indicated that the sale may be made a point of public hearings.
Telkom announced the sale of its dormant pay-TV business last week, following months of sale and liquidation discussions which were never realised. Neither Shenzhen, nor Telkom would disclose the actual sale amount, but both said it was “nominal”.
The sale came as a surprise to many industry watchers and the telecoms giant admitted that it made one last attempt at a very cheap sale to recover some of its lost R470 million investment. Shenzhen has also not yet indicated what its plans for the pay-TV business are, although it will change the name of the company.
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