Telkom's CFO, Jacques Schindeh"utte, has joined its CEO and chairman in acquiring stock in the company, purchasing shares worth R994 340.
Schindeh"utte bought 55 000 shares - at an average price of R18.07 a share - on 24 July, Telkom said in a statement on Friday. Recently, CEO Sipho Maseko acquired 52 520 Telkom shares, worth R1 million, which was followed by chairman Jabu Mabuza's investment of almost R500 000 in the stock.
Telkom shares closed marginally higher on Friday, moving 27c, or 1.46% higher, to end the day at R18.77, while the JSE all-share index lost 0.59%.
The company's stock has been recovering since it hit an all-time low in May of R11.93.
The gains in the share price follow Telkom's decision to impair its legacy assets by R12 billion, which the market welcomed despite the drag in profitability. Gains also came off the back of improved profitability at an operating level.
Telkom, which listed in March 2003, saw its stock hit an all-time low after a series of negative events, including government binning a proposed offer from Korea-based KT Corporation that would have seen Telkom issue 20% more shares in return for a R3.3 billion injection.
Its stock was also affected by its results for the year to March 2012; trading updates; the resignation of its previous CEO, Nombulelo "Pinky" Moholi; and a R449 million Competition Tribunal fine, which it recently agreed to pay, after initially deciding to appeal.
Maseko has indicated a new strategy for Telkom should start being unveiled by the end of the year.
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