KT Corp, a South Korean telecoms operator, is waiting for the South African government to provide more information on the reasons why it decided to oppose the sale of a 20% stake in Telkom to KT.
Yung Kim, a senior executive vice president at KT, was…
KT Corp, a South Korean telecoms operator, is waiting for the South African government to provide more information on the reasons why it decided to oppose the sale of a 20% stake in Telkom to KT.
Yung Kim, a senior executive vice president at KT, was quoted telling reporters that the company would review the potential new conditions put forward by the government before deciding whether to proceed with deal talks again.
On 1 June, the government, which has a majority stake in Telkom, decided not to support the sale of a 20% stake in the company to KT Corp.
South African communications minister Dina Pule was later quoted saying that KT’s offer is not high enough to support Telkom.
Talks between the two companies first started in October last year and, in early May, Telkom said it had reached an agreement with KT for the stake. The deal value of R2.6bn (US$319m) was significantly trimmed as compared with the previously expected R3.8bn (US$454m) because of a decline in the share price.
Following the deal rejection, Telkom also said it would seek to obtain clarity on the consequences of the cabinet’s decision on the deal itself.
