[business live] The government is in discussions to extend certain special rights that it holds at Telkom, as it believes the company is a strategic asset that can assist with the roll out of broadband in rural areas.
THE government is in discussions to extend certain special rights that it holds at Telkom, as it believes the company is a strategic asset that can assist with the roll out of broadband in rural areas.
The state owns 39% in Telkom and has special rights through its Class A shares, which give it the right to appoint a chairman, four nonexecutive directors and veto powers regarding the CEO's appointment. The rights will expire on Saturday.
Telkom's board under the chairmanship of Lazarus Zim, who was appointed about two weeks ago, is working vigorously to ensure that it is able to appoint a CEO before the expiry date. Last week it interviewed candidates to take over from outgoing acting CEO Jeffrey Hedberg.
Communications Minister Roy Padayachie on Friday said that the government has "accepted" the rights will expire this week. However, the government is in discussions to "entrench certain special rights" it enjoys at Telkom, by including those rights in the new articles of association.
Mr Padayachie would not comment on which rights the state is keen to re-institute.
A Telkom executive said that to re-institute those rights, 75% of votes from other shareholders would be required. Combined with the Public Investment Corporation’s shares, the government owns about 54% in Telkom.
Mr Padayachie said the government was in discussions with the JSE to ensure that the rights it seeks are not in conflict with listing rules.
He said Telkom was a strategic asset and an important instrument to achieve universal access, including access to broadband services.
Meanwhile, Mr Padayachie held the first of a series of meetings with the CEOs and chairmen of the top 30 telecommunications and technology companies on Friday to discuss how they can, among other things, contribute to job creation and skills development.
The government aims to create 5-million jobs in the next 10 years.
Mr Padayachie said the New Growth Path also targets broadband infrastructure development as one of the main areas to fast-track economic development and job creation.
"We seek to guarantee that ICTs (information and communication technologies) will make its substantive contribution as an enabler for economic growth and the creation of new jobs and skills amongst our people as we strengthen the foundation for a knowledge-based economy."
Andile Ngcaba, the chairman of Dimension Data Africa, said jobs in the industry would come from many projects, such as the roll out of fibre networks and the migration from analogue to digital TV, which has the potential to create two indirect jobs per one direct job.
There are many layers in the digital migration process, from manufacturing, distribution and installation.
About 11-million set-top boxes, which can be used to receive the digital broadcasting signal, will be made in the next three years.
"The growth of (software) applications also provides job opportunities because we cannot always rely on international applications."
State seeks to extend special rights over Telkom
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment