Deals
Telkom Will Split Company Into Four Units to Boost Profit
- South African phone company to give units more autonomy
- IT-services unit BCX could become listed entity in 18 months
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Telkom SA SOC Ltd., taking the next step in a four-year turnaround under Chief Executive Officer Sipho Maseko, will overhaul its structure to spur profit and may consider offering stock in some of its units in the future.
A new holding-company format will give greater autonomy to the four main businesses of South Africa’s former phone monopoly -- a retail operation offering landline, wireless and internet services, as well as its IT services, wholesale broadband and real estate divisions -- people familiar with the matter said. Pretoria-based Telkom, almost 40 percent owned by the government, could then consider stock-market listings or sales of the units, said the people, who asked not to be named because the details aren’t public.