Shareholders are referred to the cautionary announcements dated 14 October 2011, 21 November 2011, 12 December 2011, 27 January 2012, 9 March 2012, 25 April 2012, and 8 May 2012 regarding a potential strategic venture ("Potential Strategic Venture") between Telkom and KT (collectively "the Companies"). In the announcement dated 8 May 2012, Telkom informed shareholders that the Companies had reached in principle agreement regarding the terms of the Potential Strategic Venture, subject to the fulfilment of certain pre- conditions, including receipt of in principle support for the Potential Strategic Venture by the Government of South Africa.
Shareholders are advised that on 31 May 2012 Telkom was 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. The board of directors of Telkom will be engaging with the Honourable Minister of Communications to discuss cabinet's decision and the implications thereof. A further announcement will be made in due course.
Shareholders are accordingly advised to continue exercising caution when trading in the Company`s securities until a further announcement is made.
1 June 2012
Financial advisor and transaction sponsor to Telkom:
Sponsor to Telkom:
UBS South Africa (Pty) Ltd