Telkom Initial Public Offering & Education Campaign

Meeting report

PUBLIC ENTERPRISES PORTFOLIO COMMITTEE
30 October 2002
TELKOM INITIAL PUBLIC OFFERING & EDUCATION CAMPAIGN
Documents handed out
Powerpoint Presentation on Government 's Telkom IPO

Chairperson: Mr B Martins

MINUTES
Dr Eugene Mokeyane, Head of IPO: Department of Public Enterprises, covered the following topics in his briefing:
- the government's commercial and social objectives in the Telkom Initial Public Offering.
- the outreach programme for educating the public about shareholding investments and the stock exchange before the privatisation of Telkom becomes a reality.
- the budget for the IPO
- status report on the IPO
- plan for 2003 listing
- Telkom Employee Share Scheme
[see attached Powerpoint presentation for details]

Discussion
Some of the issues raised:
Mr Heine of the DP expressed concern with the delay of the IPO. He believed that the pace of the privatisation should be accelerated as Telkom was losing value.

It was noted that outside valuation had speculated that Telkom was valued at R100 billion in 1997 and today had it pegged at R40 billion. The telecommunication sector as a whole had experienced a down-turn with investors having little appetite for this sector. With IPOs it was pointed out that a country's overall economic prospects should be looked at when considering what is attractive to investors. China had had a successful IPO recently.
Mr Komphela for the ANC was concerned that the target groups - the poor and disadvantaged - would be reached via this educational outreach program. Further, why is READ the driver of this program?

It was noted that READ had the expertise and experience to translate technical material into something that can be understood.

The UDM supported the outreach program but wanted it ensured that the intended beneficiaries do get the benefits. The NNP represented by Dr Odendaal also saw it as a good initiative.

The Chair emphasised to the department the role MPs could play in this outreach initiative in their constituencies.