Telkom has sold its 75% in its troubled subsidiary, Telkom Media to Shenzhen Media South Africa (Proprietary) Limited, for a nominal amount.
Telkom last year announced a decision to significantly reduce its investment in Telkom Media. The process of finding a suitable purchase candidate had proved unsuccessful, and a Telkom Media shareholders’ meeting was called to approve the winding up of Telkom Media.
On 16 April 2009, the shareholders unanimously voted in favour of the move.
Says Naas Fourie, Telkom’s Chief of Strategy: “In a final attempt to prevent the winding-up of Telkom Media, Telkom launched an accelerated sale process for Telkom Media shareholder’s equity and loan accounts. In terms of this process, Telkom was only prepared to consider unconditional offers backed with adequate financial guarantees. An invitation was sent to parties who, in one way or the other, had expressed an interest in Telkom Media.”
In terms of the new sales agreement, Telkom disposed of its shareholding and loan account in Telkom Media.
Fourie added: “There were no conditions precedent included in the Share Sale Agreement which enabled the quick conclusion of the deal. Shenzhen agreed to procure Telkom Media and to change its name within 30 days of closing.”
Regarding the future plans of Telkom Media, Fourie stated that “decisions relating to Telkom Media’s future operations will now be in the hands of Shenzhen as the new majority shareholder”.
