Telkom considers its stock to be undervalued and will continue to explore ways to unlock trapped value, CEO Sipho Maseko told investors on Tuesday.
“It is our core belief that we remain undervalued as a company,” Maseko said of his company’s share price.
“Our market capitalisation is not a true reflection of our intrinsic value and there is a massive evaluation gap. We will explore ways to unlock this trapped value in this conglomerate.”
On Tuesday, Telkom said that unlocking value from its portfolio of businesses is a key component of its capital allocation framework and will afford management flexibility to re-base its balance sheet and invest in growth portfolios.
In the first half of the year, Telkom said it commenced with a market sounding exercise to gauge interest in Gyro masts and towers.
“We are in the process of concluding the analysis of proposals received,” the company said.
Gyro is in the advanced stages of development planning for approximately 16 properties. A further 40 properties with development potential will undergo market research to determine the best use and suitable development projects.
“Significant work is underway to enable Telkom to perform a valuation of Openserve key assets and prepare Openserve for its value unlock opportunity.
“We are also reviewing the data centre portfolio, as we seek to expand into a major infrastructure provider.”
Telkom shares have soared 78% in the past six months and roe 15.8% in the past 90 days giving the company a R16.5 billion in market value. In the past seven days, Telkom shares rose 16% and increased by 19% in the past 30 days.
The company owns BCX, Gyro, Openserve, Telkom Consumer and Telkom Small & Medium Business.
