Telkom plans to split the company into four separate business units, giving each greater autonomy, Bloomberg reported.
The report stated that the four divisions will be formed around the following divisions:
- IT Services
- Wholesale Broadband
- Real Estate
Its retail operation will include landline and wireless telecommunications, Internet services, and shops.
Telkom Group CEO Sipho Maseko told Bloomberg there are currently no plans to list any of the businesses, but it may be a consideration in the future.
Bloomberg reported that the four subsidiaries will have their own boards and balance sheets by the end of March 2018, and report to a head office overseen by Maseko.
According to the report, the split is part of Telkom’s turnaround plan and aims to increase profits.
Maseko said the objective is to grant more autonomy to the independent business units and drive excellence by breaking down bureaucracy, bringing staff closer to customers, and simplifying and digitising the company’s processes.