Fixed-line operator Telkom is in talks to sell a 20% stake to Korea-based KT corporation.
Telkom said it would issue new shares at R36.06 each to KT should the deal go through. Its share is currently trading at R32.15.
The companies are looking at “entering into long-term agreements to formalise the relationship and identified areas of mutual strategic and business cooperation,” Telkom told shareholders.
Telkom says while discussions are progressing well, “there is no certainty at this stage that these discussions will lead to a formal transaction being proposed or concluded”. It says shareholders should be cautious when trading stock.
Telkom turned over R33.4 billion from continuing operations in the year to March. Normalised profit was R2.4 billion.
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