JSE-listed Telkom is looking to reduce its interest in newly-licensed pay-TV operator Telkom Media, to the "smallest possible stake".
Addressing analysts this morning on the company`s strategy, Telkom CEO Reuben September was at pains to stress the decision to partially disinvest was not due to any concerns over the TV operator`s business plans.
"Supported by an independent third party, we have conducted an in-depth review on the business and we believe that Telkom Media`s business model is sound. However, we have to consider that media companies have very long pay-back periods and we have several initiatives - with shorter payback time frames - which are competing for a limited funding."
He added: "We realise we need to diversify our business into new areas. But we can`t do that while our own business needs attention, we need to look at our strengths."
Although Telkom`s process to reduce its shareholding is currently under way, September revealed that the company had yet to identify potential buyers to acquire its stake.
"We are still at a very early stage here. But we are looking at a rapid execution of this strategy. This should take months to accomplish. At our June results, we should be able to report that the process has been completed; if not that, we should have concluded the key points," he said.
For now, Telkom will continue to fund Telkom Media`s essential operational expenditure. Telkom Media`s loan account as at 29 February stood at R252 million, R150 million of which was in assets.
September declined to comment on the proposed launch date of Telkom Media, referring analysts to the pay-TV company.
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