for the six months ended 30 September 2014
All Board members were re-elected as per the Annual general meeting ordinary resolutions with the exception of Mr L Maasdorp who withdrew his nomination to be re-elected as director with effect from 27 August 2014.
Telkom announced on 8 August 2014 that Mr Jacques Schindehütte retired from the Board with full benefits and the disciplinary proceedings have been discontinued.
Telkom announced on 15 September 2014 that Mr Deon Fredericks had been appointed as an Executive Director and Chief Financial Officer of Telkom SA SOC Ltd effective from 12 September 2014.
Telkom had announced that it signed a heads of agreement with MTN South Africa to take over financial and operational responsibility for the roll-out and operation of Telkom's RAN. The parties will conclude reciprocal roaming agreements to enable customers of either party to roam on each other’s network.
The proposed transaction is subject to conclusion by the parties of various binding commercial agreements to give effect to the transaction, and various other approvals, including approvals by regulatory authorities as may be required for the implementation of the proposed transaction.
Telkom had announced its firm intention to make an offer regarding the possible acquisition of BCX. The Company has embarked on a strategy to improve performance and restore profitability.
Shareholders of BCX approved the acquisition by Telkom at an Ordinary Scheme Meeting held on 11 August 2014. Both parties are awaiting approval from various Competition Authorities and the Regulator.
In April 2014, as part of the larger Telkom turnaround strategy, the Company began specific discussions with representatives from organised labour. These discussions focused on the initiation of an organisational restructuring process that would result in some headcount reduction.
The staff that has been affected by this organisational restructuring, has been limited to the management and specialist layers. Telkom engaged with labour unions on an ongoing basis from 4 May 2014 on all elements of the process. At the end of September, the Section 189 process was concluded, for the affected staff. Telkom has always sought to pursue any reasonable measure to retain qualified and experienced staff. To this end, Telkom has also informed all affected staff that they are eligible to apply for any roles that may become available through normal staff movement processes, such as resignations or transfers, during their notice month of October. This offer is not part of the Section 189 process, but is a separate action by the Company as a final attempt to place affected candidates.
The intention of the Telkom turnaround strategy is to secure the future commercial sustainability of the business. The sustainable success of this Company is largely dependent on both the attraction and retention of qualified, competent and experienced professionals. The organisational restructuring has not been driven by headcount reduction targets, but rather by business imperatives that will shape the long-term commercial sustainability of the Company.