for the six months ended September 30, 2009
Disposal of Vodacom Group (Proprietary) Limited
Telkom disposed of its interest in Vodacom by selling 15% to Vodafone Group Plc ("Vodafone") and unbundling the remaining 35% to existing shareholders in Telkom.
Telkom sold 15% of its entire share capital to Vodafone Group Plc ("Vodafone") for R22,500 million less the attributable net debt of Vodacom as at September 30, 2008.
Telkom agreed to distribute 50% of the after tax proceeds from the sale Transaction to Telkom shareholders by way of a special dividend, net of any tax levied thereon, which amounted to R9,895 million.
The carrying amount of the net asset value at disposal date was R 6,825 million. This resulted in a gain of R18,535 million being recognised in Other income.
The remaining 35% was distributed to the existing shareholders of Telkom and accounted for in terms of IFRC17, Distribution of Non-Cash Assets to Owners. The fair value was calculated with reference to the Vodacom listing price at May 18, 2009. A gain on distribution was recognised in the statement of comprehensive income of R25,688 million.
The impact of the shareholder approval on the amendment of the Telkom Conditional Share Plan is an expense of R946 million.