Cabinet won’t support Telkom/KT deal

Very, very interesting!!!

May also explain yesterday's share price drop.... someone had prior knowledge of the Cabinet decision?
 
if Telkom can't convince cabinet otherwise, will this deal effectively be off?
 
And all they (KT) did was ask why we don't have flat-rate ADSL lines. Ah well, there goes that hope.
 
MickeyD said:
May also explain yesterday's share price drop.... someone had prior knowledge of the Cabinet decision?
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Definitely. I think the KT deal would have been good for Telkom and SA. They have experience in turning a SOE around, and also has experience in making FTTH work.
 
MickeyD said:
Very, very interesting!!!
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indeed - iirc correctly a forum member going by the nic "Sting" noted that it would be necessary to take this deal off the table before Telkom's wholesale assets could be considered for use as the core of a national broadband network ;)
 
Go Cabinet! Keep these imperial bastards out! Korea must die! Our great protector China decrees ...
</Sarcasm>

20 bucks says BRICs is behind this ...
 
dominic said:
indeed - iirc correctly a forum member going by the nic "Sting" noted that it would be necessary to take this deal off the table before Telkom's wholesale assets could be considered for use as the core of a national broadband network ;)
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If that was the case - or cause - cabinet's statement would probably have reflected as much.
 
Guys, explain this to me - Government owns 39% and PIC about 12% right? Do they both combine as 'Cabinet' as the majority shareholder and key decision maker?
 
I'm not entirely sure I like this tbh....

This seems to me to be more about not having foreign ownership of companies rather than anything else.
 
Pavan said:
Guys, explain this to me - Government owns 39% and PIC about 12% right? Do they both combine as 'Cabinet' as the majority shareholder and key decision maker?
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The ability to block the transaction doesn't arise because of government being the majority shareholder indirectly. A condition of the transaction from the outset has been the support of government in principle. So they don't need to twist anybody at the PICs arm to get their way on this one.
 
Crazy.

When they can line their nasty pocketses (a la etoll) then they will go through with the deal

If they can't line their nasty pocketses, they'll call the deal off.
 
dominic said:
haven't seen it yet (Cabinet's statement) - link?
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Relying exclusively on the media reports and it seems that the communication from Cabinet has exclusively run Cabinet - Minister of Communications - Telkom - Public. Cabinet is likely to include comment in the next briefing to the press and I strongly suspect that we will hear a routine about BRICs and jobs. If cabinet had passed on a message to the Minister that it is related to NBN issues I can't imagine that it wouldn't become more glamorous along the chain.
 
Paul Hjul said:
The ability to block the transaction doesn't arise because of government being the majority shareholder indirectly. A condition of the transaction from the outset has been the support of government in principle. So they don't need to twist anybody at the PICs arm to get their way on this one.
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Aha... thanks for that, makes sense.
 
Very interesting decision. I wonder what the implications of this will be on the Telkom's Network Transformation project - probably and hopefully none.

I wonder if the decision has anything to do with LLU. Foreign shareholders would definitely be against LLU, for obvious financial reasons. Perhaps this is a good decision? Perhaps government have learnt from the previous AT&T shareholders who milked our country dry, didn't invest in the network, and than ran away with our hard earned cash just before things started falling apart.

I'd really like to read some expert analysis on this decision by government.
 
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