Jacques Schindeh"utte, Telkom's CFO, has bought shares in the company worth almost R6 million, just days after he was re-elected at the company's annual general meeting.
Schindeh"utte bought 243 700 in stock, at a price of R24.45 a share. Telkom's share price, which is in recovery mode, closed yesterday at R24.55, after having gained 1.03%, or 25c, yesterday.
The JSE all-share index gained 0.05% yesterday.
In July, Schindeh"utte bought 55 000 shares - at an average price of R18.07 a share - investing R994 430 in the stock. This purchase followed one by CEO Sipho Maseko, who acquired 52 520 Telkom shares, worth R1 million, and chairman Jabu Mabuza's investment of almost R500 000 in the stock.
Schindehutte, appointed in June 2011, was previously Absa Group's financial director, a position which he held until March 2010. During his time at the bank, he was involved in UK-based Barclays buying a majority stake.
Before joining Absa, Schindehutte was employed by Transnet in a number of senior roles for about 14 years.
Telkom's share price has been recovering since it hit an all-time low in May, of R11.93. These gains came after it decided 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 in November, when the company reports its interim results.
Share