The Public Investment Corporation (PIC), which manages the government's pension fund money, said yesterday that after making a profit of R1.5 billion by warehousing shares in Telkom, it had sold two-thirds of the stake to the Elephant Consortium.The PIC will keep 5 percent of Telkom and the Elephant Consortium 10.1 percent.
The shares were taken on by the PIC in November last year after the Elephant Consortium, led by former director-general of the department of communications Andile Ngcaba, and Women Investment Portfolio Holdings (Wiphold) were unable to come up with a viable funding structure.
The PIC bought the stake from Thintana, Telkom's US and Malaysian shareholder, for R78.74 a share, or R6.6 billion. Brian Molefe, the chief executive of the PIC, said yesterday that the shares were sold to the consortium at R92.50 a share.
The PIC realised R1.5 billion on the deal, an annualised return of 78 percent, while the consortium took on the shares at a discount of about 17 percent, given that Telkom's stock was trading at R109 yesterday. The share leapt another 1.5 percent after the PIC's announcement to close at R110.05.
The Elephant Consortium has been split into the Lion and the Buffalo consortiums, which will share the 10.1 percent stake equally. Ngcaba will lead the Lion Consortium while Wiphold, represented by Gloria Serobe, will lead the Buffalo Consortium.