KT Corp in talks to acquire 20 per cent stake in Telkom

Telkom South Africa has confirmed that it is in talks with South Korea’s KT Corp regarding a possible investment by the Korean firm.

If the talks are completed, then it is expected that KT Corp will take a 20 per cent stake in Telkom SA.

Should the venture be agreed, Telkom will issue new Telkom ordinary shares for cash at an issue price of ZAR36.06 (US$4.61) per new Telkom ordinary share. That represents a 12 per cent premium over the current share price, and an investment of around US$600 million.