JSE-listed fixed-line operator Telkom says it and Korean KT Corporation are finalising the terms of a potential strategic venture.
This morning, the fixed-line operator issued a statement to shareholders, saying a diagnostic review has been completed and the companies have “harmonised their respective findings”. KT and Telkom are now in the process of finalising the terms of the potential strategic venture, Telkom says.
“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.”
However, Telkom says there is no certainty that a formal transaction will be proposed or concluded and shareholders should exercise caution when trading shares.
Telkom, which was privatised in 1991, currently has an installed base of about 4.3 million lines. However, the company is facing dwindling voice revenue, increasing competition and pricing pressure.
KT was founded in 1981 and became a “government-funded” corporation in 1997. It was privatised in 2002. In the past 12 years, it has increased the number of lines from 4.5 million to 20 million, making telephony a universal service.
Share
