10 August 2000
The Department of Public Enterprises (DPE) and the Department of Communications (DoC) have today issued a Request for Proposal (RFP) for the appointment of a Global Co-ordinator ahead of Telkom's Initial Public Offering (IPO).
Following on the heels of the recent RFP for a Policy Advisor to advise Government on the post-exclusivity telecommunications policy and the licencing of competition to Telkom, Government now intends to appoint a leading investment bank to advise it on the structure and process of Telkom's IPO.
The key criterion set out in the RFP demonstrate the requirement for an advisor with the capabilities to manage one of the largest listings on the Johannesburg Stock Exchange (JSE).
An IPO office to manage all IPOs for State-owned enterprises has been established in the Department of Public Enterprises and will include representatives from relevant government departments. The first IPO that this office will manage is the Telkom IPO.
Commenting on the RFP, the Minister of Public Enterprises, Jeff Radebe said:
"Following the release of the Policy Framework for an Accelerated Agenda for the Restructuring of State-owned Enterprises yesterday, this is a major step towards the realisation of one of the most significant transactions we outlined. The successful IPO of Telkom will bring considerable benefits through empowerment and stimulation of a wider shareholder culture throughout the country."
The Minister of Communications, Dr Ivy Matsepe-Casaburri, said: "As the major shareholder of Telkom, I believe that the IPO will be an important step in positioning the company as a global player in a rapidly developing industry and in the new economy. The IPO will be critical to injecting greater market discipline into Telkom, which will optimise the value of Government's shareholding and deliver better and more efficient telecommunications services to our people. The IPO is a bold move towards redressing the economic imbalances of the past by offering all South Africans the opportunity to own shares in a lucrative investment, and to create wealth. One of Government's strategic objectives is to develop and stimulate a culture of equity ownership and a culture of savings amongst those who have until now been economically marginalised."
Information on the specifications concerning the RFP can be accessed on the Internet at www.dpe.gov.za/docs/
Issued by: The Department of Public Enterprises
For further information contact:
Dr. Ajay Makan (DPE) Tel: (012) 342 7111
e-mail: makanak@ope.pwv.gov.za
Mr. Brian Sokutu (DoC) Tel: (012) 427 8519 Cell: 083 327 3229
e-mail: brian@doc.pwv.gov.za