Telkom is inching closer to a deal with Korea’s KT Corp, the JSE-listed fixed-line operator told shareholders on Wednesday. The operator once again renewed a cautionary notice to shareholders about the talks, which it first revealed in October 2011.
According to a new statement from Telkom, the two companies have completed a “diagnostic review and harmonised their respective findings”.
“The companies 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 … to Telkom shareholders for approval.”
When it first announced the talks, Telkom said it was negotiating to sell a 20% equity stake in the operator to KT Corp. It’s not known if those proposed terms have been changed. — (c) 2012 NewsCentral Media