• Caught in the debt trap?

    Help us help you by taking our second annual Debt survey and you could win R3 000.

  • Rich man, poor man

    Culture change from below is the only way to overcome poverty, says Leopold Scholtz.

  • Tech bubble talk

    After the tech euphoria of 2013, the fast-moving sector has hit a speed bump.

Data provided by McGregor BFA
All data is delayed
Loading...
See More

Telkom in MOU with Korean firm

Dec 12 2011 14:28 I-Net Bridge

Company Data

TELKOM SA SOC LIMITED [JSE:TKG]

Last traded 37.45
Change -0.8
% Change -0.02
Cumulative volume 1677102
Market cap 19.50bn

Last Updated: 24/04/2014 at 04:29. Prices are delayed by 15 minutes. Source: McGregor BFA

Related Articles

Helios to give up running former Telkom unit

Cosatu opposes Telkom's Korean tie-up

Telkom looking to sell 20% stake

Telkom earnings to take a hit

Telkom profit slumps 36%

 
Johannesburg - Telecoms operator Telkom SA [JSE:TKG] said on Monday that it has entered into a memorandum of understanding (MOU) relating to a potential strategic venture with South Korean-based KT Corporation.

In October, Telkom said it had entered into discussions with KT to explore KT potentially acquiring a strategic equity shareholding of 20% in the post-issue ordinary share capital of Telkom.

"The MOU provides for an exclusive period of engagement and information exchange to enable the companies to confirm the areas of mutual strategic and business cooperation and envisaged benefits of the potential strategic venture (diagnostic review)," the group said in a statement.

The diagnostic review would commence immediately and Telkom said it would update shareholders in six weeks, when the cautionary announcement was renewed.

Telkom said on October that should the two companies reach an agreement, KT would buy Telkom ordinary shares, by way of a specific issue of Telkom shares, at a price of R36.06 per share. If implemented, this would result in KT having a 20% interest in the post-issue ordinary share capital of Telkom, worth about $600m (R4.7bn).

KT has a market capitalisation of about $10bn. In 2010, it reached circa $18.7bn of operating revenues with earnings before interest, tax, depreciation and amortisation of circa $4.7bn.

The group is a market leader in the Republic of Korea's fixed and broadband segment with an 86% and 45% market share respectively, and number two in the mobile business (32% market share, with approximately 16.8m subscribers).

Telkom advised shareholders to continue exercising caution when trading in its securities until a further announcement was made.
telkom  |  telecommunication  |  ict
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
2 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're Talking About: Small Business

Standard Bank is looking for 12 entrepreneurs to participate in a 10-part TV series. They could win a R1m investment into their dream.
 
 

Police allowed to become brutal - DA lawyer

A DA election advert depicts how the government has allowed the police to become brutal, Icasa's complaints and compliance committee has heard.

 
 

Latest elections multimedia

Watch what happened when we blindfolded Helen Zille and asked her to eat random things
13 days to elections - news you need to know
11 Julius Malema quotes you'll never forget
DA won't get 30% - Zille

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...