HANDS OFF TELKOM

Finweek English Edition - - INVESTMENT -

The new Telkom man­age­ment team has hit the ground run­ning. First it set­tled with the Com­pe­ti­tion Com­mis­sion and now it has an­nounced that it will be mas­sively writ­ing down the “car­ry­ing value of the legacy net­work of the Group”. The stated net as­set value (NAV) of Telkom was R57 in the last year end while the share lan­guished un­der R20. This write-down won’t hurt cash, al­though it will make the re­sults look ex­tra ugly on the sur­face and im­por­tantly in­di­cate a clean slate by the new man­age­ment team. The big­gest is­sue re­mains a sim­ple one: Govern­ment med­dling and most com­men­ta­tors say they’d only be in­ter­ested in Telkom once Govern­ment gets out of the way and lets the com­pany run it­self ‒ so a good start, but Govern­ment needs to give the telecom­mu­ni­ca­tions com­pany space.

Telkom SA SOC

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