loosecannon
Senior Member
Transnet has no plans to dispose of Transtel
October 7, 2004
By Mzwandile Faniso
Johannesburg - Transnet was reviewing the sale of Transtel, its communications company, as its services were important to the business of the transport utility, Pradeed Maharaj, Transnet's group executive of strategy and transformation, said yesterday.
"Transtel continues to be a critical part of Transnet and there are some issues to be dealt with before we can talk about selling," Maharaj said.
He said the transport utility was not in talks with any parties about the sale of Transtel.
According to Transnet's annual report, it had taken a decision to sell non-businesses, which included Transtel, but this was before the department of communications approved the licence of the second network operator (SNO) early last month. Transtel has a 15 percent stake in the SNO.
Because of delays in the issuing of the SNO licence, Transnet's board had made impairment provisions of R526 million and net realisable value of R103 million for its investments in the SNO through Transtel.
Eskom Telecommunications and Transtel have already spent more than R2 billion to strengthen their private telecommunications network and Transnet expected the technology of the equipment installed to remain current for the next three years.
In the past few weeks the department of public enterprises had approved the list of the non-core businesses Transnet wanted to sell.
Maharaj said although telecommunications were non-core to Transnet's business, the signalling services provided by Transtel were critical to the utility's core business.
Transnet, which reported a loss of more than R6 billion, would sell its non-core businesses as part of its turnaround strategy that was first announced by chief executive Maria Ramos in August.
October 7, 2004
By Mzwandile Faniso
Johannesburg - Transnet was reviewing the sale of Transtel, its communications company, as its services were important to the business of the transport utility, Pradeed Maharaj, Transnet's group executive of strategy and transformation, said yesterday.
"Transtel continues to be a critical part of Transnet and there are some issues to be dealt with before we can talk about selling," Maharaj said.
He said the transport utility was not in talks with any parties about the sale of Transtel.
According to Transnet's annual report, it had taken a decision to sell non-businesses, which included Transtel, but this was before the department of communications approved the licence of the second network operator (SNO) early last month. Transtel has a 15 percent stake in the SNO.
Because of delays in the issuing of the SNO licence, Transnet's board had made impairment provisions of R526 million and net realisable value of R103 million for its investments in the SNO through Transtel.
Eskom Telecommunications and Transtel have already spent more than R2 billion to strengthen their private telecommunications network and Transnet expected the technology of the equipment installed to remain current for the next three years.
In the past few weeks the department of public enterprises had approved the list of the non-core businesses Transnet wanted to sell.
Maharaj said although telecommunications were non-core to Transnet's business, the signalling services provided by Transtel were critical to the utility's core business.
Transnet, which reported a loss of more than R6 billion, would sell its non-core businesses as part of its turnaround strategy that was first announced by chief executive Maria Ramos in August.