HANDS OFF TELKOM
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