Finance minister Trevor Manuel yesterday gave the first official indication that Telkom will not be listed before the end of the current financial year, as government has vowed to do after initially saying the IPO would happen before the end of the calendar year.
"Provisions in the budget framework for the proceeds of the Telkom public share offer and the sale of M-Cell shares is deferred to 2002/2003," Manuel said in his medium-term budget policy statement to Parliament yesterday.
Market and industry watchers have predicted a delay for some time, particularly after world markets weakened in the wake of the September attacks in America.
The initial delay, which saw the target date moved to February 2002, was blamed on the impossible timeframe for the introduction of the Telecommunications Amendment Bill, which is required to enable the listing.
Sources say October 2002 is the likely new target date, but that any date is tentative and dependent on global market conditions at the time.
There is also speculation that such a delay could decrease the value of the eventual listing, as it is only three months from the possible introduction of carrier pre-select. Communications minister Ivy Matsepe-Casaburri recently told Parliament that carrier pre-select would be enabled in 2003. Provisions for it was earlier removed from the Telecoms Bill in what was widely seen as a move to protect the value of the listing by limiting the competitive scope of the second national operator (SNO), due to be operational by June next year.
The Telkom IPO office could not immediately be reached for comment.
Telkom says it continues to work with government and will be ready for the listing whenever the government deems it opportune.
Despite continued pressure from trade union organisation Cosatu, the government says it is still committed to the listing.
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