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SA government rejects KT stake in Telkom
15 June 2012
Telkom’s plan to sell 20% share to Korea Telecom rejected by South African government
The South African government has rejected fixed-line operator Telkom’s plan to sell a 20% share in the business to Korea Telecom for nearly $314 million, reported Dow Jones Newswires. The government owns a 39.8% share, while the country’s Public Investment Corporation has a further 10.9% share.
Telkom said in a statement to Dow Jones Newswires that it offered this plan to the cabinet, but remained unsuccessful to get approval, a condition required to continue with the sale. Telkom will approach the minister of communications in the country regarding the cabinet’s verdict, it added.
The South Korean operator agreed in May to pay 25.60 rand ($3) a share for the stake in the South African operator, which was below the 36.06 rand ($4.30) a share that it had decided to pay in October 2011.
Korea Telecom remained unavailable to comment on this development, according to the news agency. GTB
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