South Africa to dispose of portion of Telkom shares

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CAPE TOWN (Reuters) – South Africa will dispose of a portion of its stake in Telkom with an option to buy it back later, Finance Minister Malusi Gigaba said in his budget speech on Wednesday.

Treasury is seeking to avoid breaching the expenditure ceiling due to bailouts of ailing state firms, Gigaba said. The government holds a state of about 39 percent in landline provider Telkom.

“The expenditure ceiling is threatened in the current year, as a result of government’s recapitalization of South Africa Airways and the South African Post Office,” he said.

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