South African fixed-line operator Telkom announced it was in discussions with South Korea’s KT Corp, whereby the latter could acquire a strategic 20% stake in the former via a share issue.
The company said that, if an agreement is reached, Telkom…
South African fixed-line operator Telkom announced it was in discussions with South Korea’s KT Corp, whereby the latter could acquire a strategic 20% stake in the former via a share issue.
The company said that, if an agreement is reached, Telkom would issue new ordinary shares at R36.06 (US$4.60) each. KT Corp would buy the new shares for cash.
Telkom has hired Deutsche Bank as lead financial adviser and transaction sponsor, Deloitte as co-adviser and Eversheds as legal adviser.
The South African state holds 39.8% of Telkom and state-owned Public Investment Corporation holds 10.9%. The free float is of 47.3% and treasury stock 2%.
Telkom declined to comment further and KT Corp was not immediately available for comments.
