| Fri 1 Apr 2011, 14:15 | | TKG - Telkom SA Limited - Disposal of Multi-Links CDMA business |
|
TKG
TKG
TKG - Telkom SA Limited - Disposal of Multi-Links CDMA business
Telkom SA Limited
(Registration number 1991/005476/06)
JSE share code: TKG
ISIN: ZAE000044897
("Telkom")
Disposal of Multi-Links CDMA business
Telkom shareholders are referred to the interim results announcement dated 22
November 2010 in which Telkom announced that the board had mandated management
to review options for the exit of the CDMA business of Multi-Links
Telecommunications Limited ("Multi-Links"). On 31 March 2011, Telkom and
Visafone Communications Limited ("Visafone") entered into a legally binding
agreement regarding the sale of the Multi-Links` CDMA business to Visafone for
an enteprise value of US$52 million through a number of transaction steps. The
proceeds for Telkom will be net of the existing liabilities of Multi-Links CDMA
business.
The transaction is conditional on inter-alia regulatory approvals. Upon the
successful closing of the transaction, Telkom will retain Multi-Links` fibre
network and fixed line operations in Nigeria.
Commenting on the transaction, Jeffrey Hedberg, former Acting Chief Executive
Officer of Telkom said: "We are pleased to announce the successful conclusion of
realigning our business model to focus on our core competencies. Telkom
management is of the opinion that the sale of the Multi-Links` CDMA business to
Visafone represents the best option available to our shareholders and Multi-
Links` customers."
Jim Ovia, Founder and Chairman of Visafone commented: "Visafone recognises that
this deal will solidify its position in the Nigerian marketplace and is
committed to offering world-class voice and data solutions to existing Multi-
Links customers.
Pretoria
01 April 2011
Sponsor: UBS South Africa (Pty) Ltd
Special note regarding forward-looking statements
Many of the statements included in this announcement, as well as oral statements
that may be made by us or by officers, directors or employees acting on behalf
of us, constitute or are based on forward looking statements.
All statements, other than statements of historical facts, including, among
others, statements regarding our mobile and other strategies, future financial
position and plans, objectives, capital expenditures, projected costs and
anticipated cost savings and financing plans, as well as projected levels of
growth in the communications market, are forward looking statements. Forward
looking statements can generally be identified by the use of terminology such as
"may", "will", "should", "expect", "envisage", "intend", "plan", "project",
"estimate", "anticipate", "believe", "hope", "can", "is designed to" or similar
phrases, although the absence of such words does not necessarily mean that a
statement is not forward looking. These forward looking statements involve a
number of known and unknown risks, uncertainties and other factors that could
cause our actual results and outcomes to be materially different from historical
results or from any future results expressed or implied by such forward looking
statements. Among the factors that could cause our actual results or outcomes to
differ materially from our expectations including but not limited to those risks
identified in Telkom`s most recent annual report which are available on Telkom`s
website at www.telkom.co.za/ir.
We caution you not to place undue reliance on these forward looking statements.
All written and oral forward looking statements attributable to us, or persons
acting on our behalf, are qualified in their entirety by these cautionary
statements. Moreover, unless we are required by law to update these statements,
we will not necessarily update any of these statements after the date of this
document, either to conform them to actual results or to changes in our
expectations.
Date: 01/04/2011 14:15:01 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
