Finance Minister Malusi Gigaba has said the government will sell part of its stake in Telkom.
Gigaba made the statement during his medium term budget speech today. The government currently owns 39.76% of the company.
“We have decided to dispose of a portion of government’s Telkom shares. We do not take this decision lightly, but we have had to in order to maintain the credibility of the expenditure ceiling,” said Gigaba.
“The expenditure ceiling is threatened in the current year, as a result of government’s recapitalisation of South African Airways and the South African Post Office.”
“Government is disposing of a portion of its Telkom shares to avoid a breach, with an option to buy them back at a later stage,” he said.