As government prepares to find another R23 billion to fund SA's ailing power utility, Eskom, it says the sale of non-core assets is "firmly on track".
However, government has yet to reveal details about which assets are to be spun off, saying these will be released at the "appropriate" time. Last October, reports emerged that government was looking at selling its stake in Vodacom to partially fund Eskom, which is facing an ongoing battle to keep the lights on.
That news spurred the suggestion that the state may also sell out of its Telkom stake, with analysts saying government should not have any say in an operational asset but rather stick to making policy.
Government owns 39.76% of Telkom, a stake worth R13.6 billion, and also has a 13.91% share of Vodacom - worth almost double its Telkom investment at R26.9 billion. However, Telkom has not paid any dividends in the past three years, while government has reaped more than R5 billion from Vodacom in the same time.
Analysts have suggested Vodafone, which already has a 65% stake in Vodacom, would be the most likely buyer for government's share. However, Telkom is unlikely to be sold off as the state sees it as a strategic asset and it is playing a vital role in rolling out the first eight municipalities under SA Connect.
Yesterday, minister of finance Nhlanhla Nene tabled the Eskom Special Appropriation Bill in Parliament, which will enable the appropriation of a R23 billion allocation to Eskom. He also tabled the Amendment Bill to allow a R60 billion loan to Eskom to be converted into equity.
This follows Nene's announcement during the budget of a complementary package to strengthen Eskom's financial position. The R23 billion allocation will be done in three tranches, with the first one of R10 billion taking place in June.
Share