The Telkom board and representatives from government yesterday confirmed that the company is to be listed on the JSE during the current year.
In a short statement released last night, Telkom says a meeting between its board, minister of communications Ivy Matsepe-Casaburri, minister of finance Trevor Manuel and minister of public enterprises Jeff Radebe led to the announcement.
Each of the three departments is responsible for a different aspect of the listing process, and collectively represents government`s shareholding in the company.
"The meeting laid to rest the speculation that there is a rift between government and the Telkom board," Telkom said. "The ministers affirmed their confidence in the Telkom board and their leadership through this challenging period."
Rumours that the listing may be delayed until 2002 were blamed in part on the rand`s slump last week, which saw it trading at an all-time low of R8 to the dollar at one stage.
Market watchers say the statement is a clear response to the rumours and that the commitment to a listing will be seen as a positive sign, but may not play a major role in stabilising the currency.
Telkom also says the ministers assured it that the telecommunications policy framework required for a successful listing would be finalised in the first quarter of the year. A colloquium on the desired shape of the post-competition market and the regulation needed to create it is scheduled for February, and a final policy document is expected soon after.
Amendments to the Telecommunications Act are expected to be fast-tracked through the parliamentary approval process.
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