Telkom, KT to finalise potential JV findings in a few weeks

1 Feb 2012

Telkom South Africa has confirmed that it expects to finalise its review of a potential joint venture with South Korea’s KT Corporation imminently. TechCentral has reported that, in an update to shareholders on Friday, Telkom said that a ‘diagnostic review’ is ‘well progressed’ and the two companies expect to publicise their findings within a matter of weeks. In October 2011 TeleGeography’s CommsUpdate reported that KT Corp had expressed an interest in acquiring 20% of Telkom’s equity, with Telkom planning to sell a number of new shares to KT at a price of ZAR36.06 (USD4.59) apiece. Further, in December Telkom signed a memorandum of understanding (MoU) with KT which saw them agree to a period of exclusive engagement and information exchange to share areas of mutual strategic and business cooperation. Telkom’s shareholder update reportedly concludes: ‘[Following completion of these talks, the companies will] engage with key stakeholders before finalising the transaction agreements and presenting the transaction to Telkom shareholders for approval. Shareholders are advised that discussions regarding the potential strategic venture are ongoing and there is still no certainty that a formal transaction will be proposed or concluded’.

South Africa, South Korea, KT Corp, Telkom South Africa