Johannesburg - South African telecommunications companies Vodacom and Telkom fell after the government initiated a plan to sell listed assets to help rescue state-utility Eskom.
Vodacom, the wireless operator with the most subscribers in South Africa, erased gains to be down 0.2 percent at 127.65 rand as of 2:08 p.m. in Johannesburg.
Telkom, Africa’s largest land-line operator, was up 2.7 percent after being 5.8 percent higher earlier in the day.
South Africa will raise at least 20 billion rand by selling shares in listed companies, stakes in state-owned entities and real estate to finance a bailout for power utility Eskom, Finance Minister Nhlanhla Nene said in the mid- term budget in Cape Town today.
The government is exploring a sale of its 26.7 billion-rand stake in Vodacom as it seeks funds for Eskom, four people with knowledge of the matter told Bloomberg last week.
The government has approached financial advisers about the possible disposal of its 13.9 percent stake in Vodacom, said the people. - Bloomberg News