Telecommunications company, KT Corporation (KT) is in talks with Telkom SA Limited (Telkom) about entering into a Memorandum of Understanding (MoU) regarding a potential strategic venture and acquisition of a stake in Telkom.
Should the two companies reach an agreement, KT would buy Telkom ordinary shares, by way of a specific issue of Telkom shares, at a price of ZAR 36.06 (about $4.6) per share, which if implemented would result in KT having a 20% interest in the post-issue ordinary share capital of Telkom (about US $ 600 million).
There is no certainty at this stage that these talks between KT and Telkom will lead to a formal transaction and further information will be announced in due course.
KT is an integrated telecommunications service provider in the Republic of Korea. The company is active in fixed telephony, mobile, broadband, satellite, and IPTV. KT has a market capitalisation of about US $10 billion.