• IS provokes sea-change

    It has been a grave mistake to defy both Russia and France, says Leopold Scholtz.

  • Nene's SAA nemesis

    No political figure seems to have the guts to speak out against Dudu Myeni, says Solly Moeng.

  • The mp3 revolution

    Ian Mann takes a look at the war between digital music and the compact disc.

All data is delayed
See More

Telkom shares dive as Korean talks end

Jul 13 2012 14:06
I-Net Bridge

Company Data


Last traded 63
Change -1
% Change -2
Cumulative volume 933775
Market cap 0

Last Updated: 27-11-2015 at 05:00. Prices are delayed by 15 minutes. Source: McGregor BFA

Related Articles

Investors hang up on Telkom

Telkom results show business challenge

SA seems ‘closed for business’

Telkom nationalisation on the cards

Union calls for Telkom bosses' heads

Govt rejects R3.3bn Telkom-KT deal


Johannesburg – Telkom [JSE:TKG] shares dropped 4% in midday trade on the JSE on Friday‚ soon after the operator announced that it had ended potential strategic venture between Telkom and Korean group KT Corporation.

“Shareholders are advised caution is no longer required to be exercised by shareholders when trading in the company’s securities. Further announcements will be made as required‚” Telkom said.

The proposed strategic venture between Telkom and KT Corporation was near maturity a few weeks before the government’s decision.

“At the moment Telkom needs to come up with a new strategy‚ competition is stiff. The investor expectation was that KT would bring expertise to move Telkom forward - now the company has lost that competitive advantage‚ which affected the shares‚” Leticia Nkumbula‚ telecoms analyst at Africa Analysis‚ said.

The two parties had reached an in-principle agreement regarding the terms of the venture‚ including a revised cash issue price for the new Telkom ordinary shares to be issued to KT.

Had the venture been implemented‚ it would have resulted in KT acquiring a strategic equity shareholding of 20% in Telkom with the companies entering into a five-year co-source management services agreement to formalise the relationship and identify areas of mutual strategic and business co-operation.

At 13:19 Telkom shares were trading 2.25% lower.

*For more on this and other Telkom related stories follow us on, Twitter, Facebook and Google+.



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
Comments have been closed for this article.

Company Snapshot

We're talking about:


Marketing is a big concern in SA's small business community, followed by a lack of confidence and partnering with the wrong people, according to a survey.

Money Clinic

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

Voting Booth

The 25 basis points interest rate increase is:

Previous results · Suggest a vote