All data is delayed
See More

Telkom looking to sell 20% stake

Oct 14 2011 08:21
Reuters & I-Net Bridge

Company Data


Last traded 71
Change 2
% Change 3
Cumulative volume 531612
Market cap 0

Last Updated: 09-10-2015 at 05:00. Prices are delayed by 15 minutes. Source: McGregor BFA

Related Articles

Solidarity accepts Telkom wage offer

Telkom launches new service

Telkom loses R7bn in Nigeria venture

Phone firms told to amend contracts

Telkom offers free broadband trial

Telkom earnings to take a hit

Johannesburg - Telkom [JSE:TKG] is in talks with KT Corporation that could see the South Korean company take up a 20% stake in the fixed line operator.

The two firms would issue new Telkom ordinary shares of R36.06 each should the deal come through, Telkom said in a statement on Friday.

KT Corp, South Korea’s top fixed-line carrier and No.2 mobile operator, said it was seeking to buy a 20% stake in Telkom for $600m.
"We are pursuing an MOU on a stake acquisition and a strategic partnership with Telkom," KT said in a statement.

Telkom has been looking to offset shrinking demand for its core business by pushing into new businesses, such as mobile phones and new markets.

But profits have been squeezed by the high start-up costs from its mobile launch last year, and the cash-burn from selling its Nigerian unit for $10m, a fraction of what it originally paid.

Telkom expects earnings to fall by at least 40% in the six months to end-September.

Its shares are down more than 15% so far this year.

Korea Telecom and Telkom have similar histories as the fixed-line incumbents in their countries. But Korea Telecom has successfully transformed itself into a "next-generation operator". It operates in pay TV, fixed-line and mobile, has a market capitalisation estimated at $10bn and 30 000 employees.

At the JSE's opening on Friday morning, Telkom shares climbed R1.60 or 4.98% to R33.70.
kt corporation  |  telkom


Read Fin24’s Comments Policy 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
Comments have been closed for this article.

Company Snapshot

We're talking about:


With infrastructure spending having been identified as one of the key focus areas of the National Development Plan, tradesmen will continue to play a critical role in growing the South African economy through their skills.

Money Clinic

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

Voting Booth

A 30% a month return on investment is:

Previous results · Suggest a vote