• Change of culture needed

    The right leadership will help SA shed its culture of violence, says Mandi Smallhorne.

  • 10 tips to find bargains

    Susan Erasmus gives advice on how bargain hunters can get the most bang for their buck.

  • Inside Labour

    Labour's bitter breaches need to be seen in historical context, says Terry Bell.

See More

Telkom looking to sell 20% stake

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

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

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
Add your comment
Comment 0 characters remaining

Company Snapshot

Brought to you by BizNews

More from BizNews

We're talking about:


Johannesburg has been selected to host the Global Entrepreneurship Congress in 2017. "[The congress] will ensure that small business development remains firmly on the national agenda and the radar screen of all stakeholders, the Small Business Development minister said.

Top 10 richest musicians of all time

Check out the gallery to find out who they are!


Luxury living

10 of the most expensive things that will leave your jaw hanging!
Seven of the most expensive children's toys ever made
5 millionaires turned murderers
The youngest billionaires in the world and how they made it

Money Clinic

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

Voting Booth

How do you see your boss? He/sheis:

Previous results · Suggest a vote