Shareholders are referred to the cautionary announcements dated 14 October 2011, 21 November 2011, and 12 December 2011 regarding a potential strategic venture ("Potential Strategic Venture") between Telkom and KT (collectively "the Companies").
On 12 December 2011 shareholders were advised that having entered into a memorandum of understanding ("MoU"), the Companies had agreed to an exclusive period of engagement and information exchange to confirm the areas of mutual strategic and business cooperation and envisaged benefits of the Potential Strategic Venture ("Diagnostic Review").
Shareholders are advised that the Diagnostic Review is well progressed and the Companies expect to finalise their findings within the next few weeks. Following the successful completion of the Diagnostic Review, the Companies would then seek to present the findings to their respective boards of directors and engage with key stakeholders before finalising the transaction agreements and presenting the transaction to Telkom shareholders for approval.
Shareholders are advised that discussions regarding the Potential Strategic Venture are ongoing and there is still no certainty that a formal transaction will be proposed or concluded. Accordingly, shareholders are advised to continue exercising caution when trading in the Company's securities until a further announcement is made.
For enquiries
Nicola White (Investor Relations)
Tel: +27 (0)12 311 5720
Pynee Chetty (Media)
Tel: +27 (0)12 311 5247
Pretoria
27 January 2012
Sponsor to Telkom
UBS South Africa (Pty) Ltd