Listed fixed-line operator Telkom says findings into a diagnostic review around a potential strategic venture with Korea-based KT Corporation should be wrapped up in a few weeks.
In October, Telkom said it was in talks with KT, which may see the JSE-listed company sell a 20% stake to the Korean company.
In the middle of December, the listed company said it and KT had entered into a memorandum of understanding relating to a potential strategic venture.
Telkom said the memorandum the companies have entered into provided for “an exclusive period of engagement and information exchange to enable the companies to confirm the areas of mutual strategic and business co-operation and envisaged benefits of the potential strategic venture”.
Telkom said the exclusive period - which it refers to as a diagnostic period - would start immediately, and Telkom will update shareholders in six weeks when the cautionary announcement is renewed.
This morning, the company said the review “is well progressed” and the companies expect to wrap up findings within the next few weeks.
Once the review has been completed, the parties would then present the findings to their boards and “engage with key stakeholders” before completing transaction agreements and presenting them to Telkom shareholders for approval.
Telkom adds there is no certainty that a deal will be proposed or concluded.
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