Telkom / Korea Telecom transaction not going ahead
Telkom today advised shareholders on the progress regarding the potential strategic venture with Korea Telecom Corporation.
Telkom has been informed by the Honourable Minister of Communications that the proposed transaction between the Companies had been presented to cabinet on 30 May 2012 and that cabinet had taken the decision not to support the transaction as proposed.
Telkom advised shareholders on 1 June 2012 that the Company will be engaging with the Honourable Minister of Communications to discuss cabinet's decision and the implications thereof.
This engagement will seek to obtain clarity on the context of the decision given that Korea Telecom, and the transaction, were introduced to Telkom by Government.
For further enquiries, please contact:
Senior Specialist: Media Relations
Tel.: (012) 311-5247
Cell: 081 389 7874
Specialist: Media Relations
Tel.: (012) 311-7114
Cell: 081 391 4780
Telkom is a leading communications services provider in South Africa and on the African continent. We had consolidated normalised operating revenue from continuing operations of R33.4 billion and normalised profit for the year from continuing operations of R2.4 billion for the year ended 31 March 2011. Total assets from continuing operations amounted to R54.3 billion and equity attributable to the owners of Telkom to R29.6 billion as of 31 March 2011. The group generated normalised free cash flow of R3.5 billion for the year ended 31 March 2011.
We had consolidated operating revenue from continuing operations of R16.4 billion and profit for the period from continuing operations of R502 million for the six months ended 30 September 2011. Total assets amounted to R52.4 billion and equity attributable to the owners of Telkom to R29.1 billion as of 30 September 2011. The group generated free cash flow of R1.5 billion for the six months ended 30 September 2011.
As of 30 September 2011, we had approximately 4.1 million telephone access lines in service and 99.9% of our telephone access lines were connected to digital exchanges. We offer business, residential and payphone customers a wide range of services and products, including:
- fixed-line subscription and connection services to post-paid, prepaid and private payphone customers using PSTN (Public Switched Telephone Network) lines, including ISDN (Integrated Services Digital Network) lines, and the sale of the subscription based value-added voice services and customer premises equipment rental and sales;
- fixed-line traffic services to post-paid, prepaid, and payphone customers, including local, long distance, fixed-to-mobile, international outgoing and international voice-over-internet protocol traffic services;
- interconnection services, including terminating and transiting traffic from South African mobile operators, as well as from international operators and transiting traffic from mobile to international destinations;
- fixed-line data centre operations and internet services,including domestic and international data transmission services, such as point-to-point leased lines, ADSL (Asymmetrical Digital Subscriber Line) services, packet-based services, managed data networking services and internet access and related information technology services;
- e-commerce, including internet access service provider, application service provider, hosting, data storage, e-mail and security services;
- W-CDMA (Wideband Code Division Multiple Access), a 3G next generation network, including fixed voice services, data services and nomadic voice services;
- mobile communication services, including voice services, data services and handset sales through its mobile brand called 8•ta; and
- other services including directory services, through Trudon (Proprietary) Limited, wireless data services, through Swiftnet (Proprietary) Limited and internet services outside South Africa, through iWayAfrica Group (integration of Africa Online Limited and MWEB Africa Limited).