TKG
TKG
TKG - Telkom Limited - Cautionary announcement
Telkom Limited
(Registration number 1991/005476/06)
JSE share code: TKG
ISIN: ZAE000044897
("Telkom" or the "Company")
CAUTIONARY ANNOUNCEMENT
Shareholders of Telkom are advised that Telkom and KT Corporation (collectively
"the Companies") have entered into discussions regarding a potential strategic
venture ("Potential Strategic Venture") that would, if implemented, result in KT
Corporation acquiring a strategic equity shareholding of 20% in the post-issue
ordinary share capital of Telkom (excluding treasury shares reserved for Telkom
employees share schemes) ("Potential Equity Investment") and the Companies
entering into long-term agreements to formalise the relationship and identified
areas of mutual strategic and business cooperation.
Should the Potential Strategic Venture be agreed, Telkom and KT Corporation will
implement the Potential Equity Investment by way of a specific issue of new
Telkom ordinary shares for cash at an issue price of ZAR36.06 per new Telkom
ordinary share.
Shareholders are advised that whilst the discussions between Telkom and KT
Corporation are progressing well, there is no certainty at this stage that these
discussions will lead to a formal transaction being proposed or concluded.
Shareholders are advised to exercise caution when dealing in the Company`s
securities until a further announcement is made.
Pretoria
14 October 2011
Lead financial advisor and transaction sponsor to Telkom
Deutsche Bank
Co-advisor to Telkom
Deloitte
Legal advisor to Telkom
Eversheds
Communications advisor to Telkom
Capital MCG
Sponsor to Telkom
UBS South Africa (Pty) Ltd
Date: 14/10/2011 07:15:01 Produced by the JSE SENS Department.
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