Telkom’s share value on the Johannesburg Stock Exchange (JSE) has dropped after the part state-owned operator was fined ZAR449 million (US$49 million) by the Competition Tribunal.
HumanIPO reported on Wednesday Telkom had agreed the huge penalty with the Competition Tribunal after withdrawing their appeal against a charge of anti-competitive behaviour.
Shares declined 2.68 per cent to ZAR13.09 (US$1.43) on Wednesday and then sunk to ZAR12.88 (US$1.41) at lunchtime yesterday (Thursday).
The drop will do little to appease shareholders in the company who were warned by Telkom earlier this month to expect at least a 20 per cent drop in headline earnings per share (HEPS) year-on-year.
The South African government has yet to come up with a forward plan for the troubled company.
