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By Gareth van Zyl
Throwing good money after bad: This is how our newly minted and fresh suited Finance Minister Malusi Gigaba plans to help bail out SAA.
Gigaba, according to a Fin24 report, may look to sell the PIC’s R14bn stake in Telkom shares to help facilitate a bail out for nose diving SAA.
The sale, ironically, may increasingly benefit Telkom by further loosening the state’s grip on the telco operator – government and the PIC have traditionally owned around 50% of Telkom’s shares on the JSE.
But then again, the PIC will be getting rid of one of its better investments. Under CEO Sipho Maseko, Telkom’s share price has soared over 400% since 2013. Just like the investment in fading newspaper group Independent Media, the PIC will put pensioners at risk by facilitating a bail out for SAA.