Give your views on Telkom Media sale
The Independent Communications Authority of SA (Icasa), anxious to avoid a repeat of the embarrassment that followed the sale of Vodacom shares to Vodafone, will invite public comment on the sale of struggling pay TV licence holder Telkom Media to a Chinese-led consortium.
In May Telkom announced that it had sold its 75 percent stake in Telkom Media, which according to a senior employee will be known as Super5 Media, to Shenzhen Media consortium. Telkom said the pay TV company no longer formed part of its growth strategy.
Yesterday Icasa said it would publish a public notice “soon” to enable all interested parties to make comments on the transaction.
Sekgoela Sekgoela, Icasa’s spokesman, said the regulator had not yet decided whether to hold public hearings.
Icasa’s caution follows last month’s decision, which once again raised questions about its independence, when it reneged on its decision that Telkom did not need regulatory approval to sell Vodacom shares to Vodafone.
On the eve of Vodacom’s listing on the JSE, Cosatu and Icasa filed an unsuccessful court bid to block the listing.
Sekgoela would not comment on whether Icasa was being cautious by inviting public participation in the Telkom Media sale.
Since Telkom’s announcement in May, Shenzhen Media has been mum about its pay TV products and services.
The senior employee said it was business as usual and employees were hard at work preparing for the launch.
Telkom Media’s spokesman, Chris van Zyl, said yesterday that there was nothing to comment on at the moment but the company was hoping to be able to do so “fairly soon”.
However, it has emerged that Telkom Media’s minority shareholders – MSG Afrika, Anant Singh’s Video Vision and WDB Investments – complained to Icasa that they were not consulted during the transaction process the sale of shares in Telkom Media.
It is not clear whether the empowerment shareholders are planning to exit Telkom Media.
However, it is understood that they are not happy with Shenzhen Media’s strategy for the company.
Sekgoela said the authority had written to Telkom Media regarding the complaint by the empowerment shareholders and was awaiting a reply.
MSG Africa’s Given Mkhari refused to comment on either the complaint or the empowerment shareholders’ plan.
Telkom Media was awarded a licence in 2007 but is yet to start operating.
Telkom Media sale – give your views
Business Report
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