South African fixed-line operator Telkom has said it has entered into an MoU with South Korean KT Corp for a potential strategic venture.
In a previous cautionary announcement in mid-October, the South African company had said that this strategic…
South African fixed-line operator Telkom has said it has entered into an MoU with South Korean KT Corp for a potential strategic venture.
In a previous cautionary announcement in mid-October, the South African company had said that this strategic venture could result in KT Corporation acquiring a 20% in Telkom via share issue.
The company added, at the time, 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.
The MoU means that the companies are currently in exclusive talks. But according to the announcement on 13 December, “there is still no certainty that a formal transaction will be proposed or concluded.”
Telkom shareholders will be updated on the situation in six weeks.
Telkom has hired Deutsche Bank as lead financial adviser and transaction sponsor, Deloitte as co-adviser and Eversheds as legal adviser.
