Telkom has decided to hit pause on dividend pay-outs for longer than expected as it battles tough market conditions.
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But the former telecommunications monopoly faces huge challenges if it hopes to remain a significant market player.
Telkom will complete the legal separation of its wholesale division Openserve on 1 September, with the unit becoming a wholly owned subsidiary.
New Telkom CEO Serame Taukobong has a challenge on his hands: the mobile growth story that underpinned the business in recent years appears to be ending.
In an effort to unlock shareholder value trapped in its corporate structure, Telkom has announced it will seek a JSE listing for its masts and towers business.
Telkom CEO Sipho Maseko pointed out something of the obvious at the group’s interim results presentation earlier this week: the telecommunications group is undervalued.
Telkom’s ICT services business BCX will spin off its data centre business into another Telkom subsidiary, Gyro, and the telecommunications group may then seek external investors.
Telkom is aiming to reduce the gap its shares are trading at to the net worth of its assets in the next three to five years, its CEO said on Tuesday, as the company drives to unlock value across its businesses.
With rumours swirling about potential consolidation in the months ahead, Telkom CEO Sipho Maseko said his company is ready for a wave of mergers and acquisitions – should they happen.
Analysts have long criticised Telkom since its entry into the mobile market in October 2010, which hasn’t come cheap. But it’s become the company’s saving grace.