Telkom and KT finalise terms of partnership
Telkom announced today (25 April 2012) that it has completed the diagnostic review process with KT Corp regarding a potential partnership, and is now reviewing the final terms of the agreement.
“Shareholders are advised that the companies have completed the diagnostic review and harmonised their respective findings. The companies are now in the process of finalising the terms of the potential strategic venture.”
“Once the terms have been agreed, the companies will present the potential strategic venture to their respective boards of directors for approval before engaging with key stakeholders and presenting the terms of the potential strategic venture to Telkom shareholders for approval.”
Telkom went further to advise that the discussions around the “potential strategic venture” are ongoing, and that there is no certainty that the transaction will be formally proposed or concluded.
“Accordingly, shareholders are advised to continue exercising caution when trading in the Company’s securities until a further announcement is made.”
KT Corp is South Korea’s largest telecoms company, and the leader in the country’s fixed-line and broadband segment with an 86% and 45% market share respectively.
In October 2011, Telkom said it had entered into discussions to explore KT potentially acquiring a strategic equity shareholding of 20% in the post-issue ordinary share capital of Telkom.
Telkom shares were trading 0,56% higher by mid-day, up 13c to R23.40.
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