Telkom is in talks to sell 20% of its equity to Korea Telecom, the JSE-listed telecommunications group told shareholders on Friday.
?Shareholders of Telkom are advised that Telkom and [Korea Telecom] have entered into discussions regarding a potential strategic venture that would, if implemented, result in [Korea Telecom] acquiring a strategic equity shareholding of 20% in the post-issue ordinary share capital of Telkom (excluding treasury shares reserved for Telkom employee share schemes),? Telkom said in a statement on the JSE?s Sens news service.
Telkom said the companies were entering long-term agreements to formalise the relationship and identifying areas of mutual strategic and business cooperation?.
Should the deal go ahead, the two companies would implement it by issuing new Telkom ordinary shares for cash at an issue price of R36,06.
Telkom said that although the talks were ?progressing well?, there was ?no certainty at this stage? that they would lead to a formal transaction.
Telkom may have had its hand forced in publishing the Sens statement after Business Day newspaper broke the news about the talks on the front page of its Friday edition.
? Staff reporter, TechCentral