Telkom is set to pay out a special dividend of R19 per share to its shareholders, based on proceeds the fixed-line telephone operator received from the sale of its Vodacom stake to Vodafone.
Telkom signed a deal with Vodafone where the latter would acquire an additional 15% interest in Vodacom for R22.5 billion. Vodafone already owns a 50% stake in Vodacom. The rest of the 35% share would be unbundled to Telkom's shareholders.
Some of the main shareholders that would benefit from the unbundling include government, which currently owns 39.42% of Telkom; the Public Investment Corporation, with 15.23%; the Elephant Consortium, with 5.8%; Liberty Group, with 2.97%; Sanlam, with 2.17%; and two Telkom treasury stock companies, with a combined 4.07%.
Financial boost
Telkom says it will distribute half of its after-tax proceeds from the sale to Telkom shareholders by way of a special dividend.
According to a JSE statement, Telkom based the calculations of the dividend on the assumption that it will receive an interim dividend payment from Vodacom prior to implementation of the sale transaction.
Telkom will distribute the balance of the shares it holds in Vodacom (constituting 35% of the entire issued share capital of Vodacom) to Telkom shareholders in proportion to their shareholding.
Vodacom will be converted to a public company and an application will be made for the operator to be listed on the JSE.
Telkom says the deal is subject to certain conditions and that it will have a general meeting with its shareholders, providing details on the proposed transaction, in March.
Related stories:
R22.5bn Vodacom deal signed
Vodacom shines in Q4
Labour lashes out at Telkom
Vodacom gears up for future
Share