Telkom SA`s offshore shareholder, Thintana Communications, is reducing its stake from 30% to 15.1%.
Thintana, which comprises US-based SBC Communications and Malaysia`s Telekom Malaysia Berhad, says the sale will take place through a bookbuilt offering.
A bookbuilding is an exercise through which a company`s advisers determine the level of demand for shares and the price of a new issue. For a set period of time offers can be registered within a set price range.
After the sale, SBC`s stake will be reduced from 18% to 9% while Telekom Malaysia`s stake will fall from 12% to 6%.
Telkom spokesman Ravin Maharaj says Telkom cannot comment on any aspect of the announcement until the bookbuilding is over. He would not be drawn on whether Telkom will participate in the bookbuilding.
Although foreign newspapers reported at the beginning of the month that Thintana was considering selling its shares, Telkom said at the time that it had received no formal indication from either member of the consortium that there was a share sale in the offing.
Reports said Telekom Malaysia was considering selling its Telkom stake to raise funds for its 49% purchase of Idea Cellular in India.
Thintana says it will enter into a lockup agreement on its remaining shareholding in Telkom. "The lockup agreement will remain effective until the release of Telkom`s interim financial results for the period ending 30 September 2004, which is scheduled to take place on 22 November 2004."
It says the offering will not change the management services arrangements it provides to Telkom in terms of the strategic services agreement between Thintana and Telkom.
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