Government may sell Telkom and Vodacom shares to fund Eskom

JStrike

Honorary Master
Joined
Aug 29, 2005
Messages
12,454
Good news. Telecoms is a sector that is pretty good on it's own.
Gov doesn't need to be invested there
 

bladebob

Well-Known Member
Joined
May 22, 2005
Messages
378
The best news all week. Finally Telkom can go Private and this mess can get sorted out once and for all.
 

JStrike

Honorary Master
Joined
Aug 29, 2005
Messages
12,454
The best news all week. Finally Telkom can go Private and this mess can get sorted out once and for all.
Telkom has been private for a while if I'm not mistaken. Gov has a minority stake in it, not a majority stake
 

MickeyD

RIP
Joined
Oct 4, 2010
Messages
139,117
Here's the problem, though... together with the PIC they have a 53% controlling shareholding.

Scan_051.jpg
 

recre8

Senior Member
Joined
Jan 14, 2010
Messages
885
Can't they please sell the SABC and the post office as well.

Probably going to get a lot of flack for this, but maybe they can also sell Robben Island to a resort company.
 

kianm

Honorary Master
Joined
Jan 13, 2014
Messages
10,526
If this will help sort out Telkom somehow it is welcome. Just don't know what they'll do next say Eskom falls again next time
 

JStrike

Honorary Master
Joined
Aug 29, 2005
Messages
12,454
If this will help sort out Telkom somehow it is welcome. Just don't know what they'll do next say Eskom falls again next time
Well, R10b is a drop in the ocean against the revenue shortfall Eskom is facing.
They need to increase electricity prices dramatically to make it sustainable. Or they will have to start selling many more high value assets (Power stations etc) soon
 

garp

Executive Member
Joined
Aug 2, 2004
Messages
8,380
This is a bit like those people who start pawning their TVs and lawnmowers to support their drug habit... it never ends well.
 

ellyally

Expert Member
Joined
Feb 7, 2013
Messages
4,413
Well, R10b is a drop in the ocean against the revenue shortfall Eskom is facing.
They need to increase electricity prices dramatically to make it sustainable. Or they will have to start selling many more high value assets (Power stations etc) soon
They only not sustainable atm due to the majority of their product being give away for free and to the smelters at less than half of cost. If they charged smelters even cost price they would be sustainable (as we've been covering than cost for them over several years of increases).

I'm not sure what the issue is with the contract, but cut em off until the pay minimum cost price(its not like BHP can't afford it)... they only employ 7k odd people here, but we cover their cost with annual increases. When contract is up, they not going to stay here and provide jobs still, they going to shut up shop and move on to the next country that'll sign a stupid deal that will rob them blind. If they off the grind, eskom could probably reduce our prices and still be sustainable, even with all the freeloaders connected.
 

JStrike

Honorary Master
Joined
Aug 29, 2005
Messages
12,454
They only not sustainable atm due to the majority of their product being give away for free and to the smelters at less than half of cost. If they charged smelters even cost price they would be sustainable (as we've been covering than cost for them over several years of increases).

I'm not sure what the issue is with the contract, but cut em off until the pay minimum cost price(its not like BHP can't afford it)... they only employ 7k odd people here, but we cover their cost with annual increases. When contract is up, they not going to stay here and provide jobs still, they going to shut up shop and move on to the next country that'll sign a stupid deal that will rob them blind. If they off the grind, eskom could probably reduce our prices and still be sustainable, even with all the freeloaders connected.
They don't give away their product for free. There a a few billion outstanding from Municipalities, but it is an even smaller drop in the ocean.
The price charged to the smelters is a big problem, as is the price charged to municipalities.

Having some of the cheapest electricity in the world is ridiculous when you have a energy shortage
 

ghoti

Karmic Sangoma
Joined
Jan 17, 2005
Messages
46,511
Good news. Telecoms is a sector that is pretty good on it's own.
Gov doesn't need to be invested there
Only thing that worries me is a previous state monopoly in private hands. Government should break up Telkom into smaller competing companies before it sells out otherwise it more than likely going to do more harm than good. However, the government being disinvested in the area might lead to improved regulation some day.
 
Top