In an update to the stock exchange Telkom said that it and KT Corp have finalised their respective diagnostic reviews that may lead to a strategic venture between the South African and the South Korean player.
The companies launched discussions in…
In an update to the stock exchange Telkom said that it and KT Corp have finalised their respective diagnostic reviews that may lead to a strategic venture between the South African and the South Korean player.
The companies launched discussions in October last year about a possible acquisition of a 20% stake in Telkom by KT Corp. If the parties strike a deal, Telkom would issue new ordinary shares at R36.06 (US$4.70) each and a total value of approximately US$495m, which KT would acquire in cash, the companies said previously.
Following the initial October announcement, the companies entered exclusive talks later that year in December.
Telkom said in its most recent update that the companies are now in the process of finalising the terms of the venture. In a next step, the deal requires board approvals from both sides and shareholder approval from Telkom investors.
Telkom has hired Deutsche Bankas lead financial adviser and transaction sponsor, UBS as sponsor, Deloitte as co-adviser and Eversheds as legal adviser.
Telkom is 39.8%-owned by the South African government, 10.9% by Public Investment Corp., itself controlled by the government, while 47.3% is in free float.
