Telkom says KT Corp discussions ‘positive’
Telkom (TKG) said that its discussions with KT Corp “continue to be positive” with the diagnostic review ‘substantially completed’.
KT Corp could potentially acquire a strategic equity shareholding of 20% in Telkom. The original price was put at R36 a share, however, that is likely to change should the companies proceed with a deal, as Telkom’s current share is R26.44 on the JSE.
On January 27, shareholders were advised that the investigation by the companies into the areas of mutual strategic and business cooperation, and envisaged benefits of the potential strategic venture (Diagnostic Review), was well progressed.
On Friday (March 9, 2012), the group said in a statement: “Shareholders are hereby advised that the diagnostic review has now been substantially completed. The companies are cooperating to harmonise their respective findings and agree the terms of the potential strategic venture.
“Discussions continue to be positive and collaborative with both companies seeking to conclude a mutually beneficial transaction as soon as possible.”
Once the diagnostic review has been finalised, and the terms of the proposed strategic venture agreed, the companies will present the proposed transaction to their respective boards of directors for approval, before finalising the transaction agreements.
Telkom warned that, whilst discussions are ongoing, “there is still no certainty that a formal transaction will be proposed or concluded.”
Accordingly, the group advised caution when dealing in its shares.
In Early trade, Telkom gained 1.03% or 27 cents to R26.44 on the local boarse.
Related Articles
Loading ...
