Government may sell Telkom, Vodacom shares to fund Eskom

South Africa’s government is planning to inject $870 million (R9.9 billion) into Eskom, and it may sell its stakes in Telkom and Vodacom to raise the money.

Reuters reported that the government may fund the $870 million as soon as June 2015.

“National Treasury has already identified a viable strategy to raise the required amount of funding that could be executed,” Treasury spokesman Jabulani Sikhakhane said.

“Due to the commercial sensitivities involved, we cannot provide details. However, the process is proceeding to plan,” Sikhakhane said.

According to Reuters, sources told it in December that the government was considering selling its shares in Vodacom and Telkom as part of its funding strategy.

Bloomberg reported in October 2014 that well-placed sources said the government retained bankers to advise on the sale of its stake in Vodacom.

This sparked further speculation that the state was looking to cash in on its 39% Telkom stake to fund Eskom.

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Government may sell Telkom, Vodacom shares to fund Eskom