Telkom was yesterday informed that a BEE consortium led by Andile Ngcaba and Women Investment Portfolio Holdings Limited and advised by Smuts Ngonyama (the "Consortium"), has concluded an agreement to acquire the remaining 15.1% interest held by Thintana Communications LLC ("Thintana") in Telkom. The agreement is subject to the fulfilment of a number of conditions precedent, which are anticipated to be fulfilled by no later than 15 November 2004. The Consortium will also acquire the special class B ordinary share in Telkom held by Thintana which will give the Consortium certain rights as a strategic equity investor.
Sizwe Nxasana, CEO of Telkom said:
"This is a positive new development and we welcome the Consortium as a new strategic shareholder and look forward to the value they will add to Telkom. I would also like to thank Thintana for their support and input over the last seven years. The knowledge and experience gained from the Thintana executives has been greatly beneficial to Telkom".
Telkom and its new strategic shareholder intend to have preliminary discussions shortly.
09 November 2004
Special note regarding forward-looking statements