Telkom is reportedly planning a major structural overhaul that could see the company split into four separate units, according to a report by Bloomberg, which noted the plan to help increase profit was the next step in a turnaround strategy under CEO Sipho Maseko.
A new holding company format would reportedly give greater autonomy to Telkom's four main businesses: its retail operation, IT services business (including BCX), wholesale broadband division and real estate division.
People familiar with the matter told Bloomberg that by the end of March 2018, the four subsidiaries will each have their own balance sheet and board, and will report to a head office run by Maseko. The increased focus should enable each division to improve financial performance, they said.
In March, the group confirmed with ITWeb it was planning to create a separate and wholly owned subsidiary to focus on its extensive property portfolio.
"Telkom's property assets have not previously been commercialised, and offer the group an additional external revenue stream," the group said at the time.
More details are expected at the group's year-end results announcement, taking place on 5 June.
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