Tough times ahead for Telkom

NOW that Telkom has paid off the last of the proceeds from its sale of Vodacom it might have a tough time keeping shareholders interested in the company, analysts say.

NOW that Telkom has paid off the last of the proceeds from its sale of Vodacom it might have a tough time keeping shareholders interested in the company, analysts say.

Yesterday Telkom paid out a combined special and ordinary dividend amounting to R1,95billion, largely arising from the May unbundling of Vodacom.

Telkom sold the 15percent of its 50percent stake in South Africa's leading mobile operator for R22,5billion to UK-based Vodafone and floated the rest on the JSE in May. The payout consisted of a R1,15 a share ordinary dividend amounting to R600million as well as a R2,60dividend adding up to R1,35billion - a combined R1,95billion.

Over the past month, Telkom's share price has rallied ahead of the dividend payout after a massive drop of over R20 a share in the past three months.

Towards the end of April, Telkom was trading at over R60 a share but dropped to around R39 a share due to the Vodacom deal and further down to R31,50 last month. - Zweli Mokgata

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