MERGERS, ACQUISITIONS AND FINANCIAL RESULTS

Telkom South Africa completes take-over of Nigeria’s Multi-Links

The share which was traded for $130 million has given Telkom 100 per cent ownership of the company having acquired 75 per cent of the company earlier in 2007. The 2007 deal, changed the company's name to Multi-Links Telkom

Telko, bought the private telecommunications operator from Kenston Investment Ltd. The deal was effective from January 21. Telkom acquired 75 per cent of Multi-Links in May 2007. It has a Universal Access Licence that allows it to provide fixed, mobile, fixed wireless, international and data services in Nigeria, the fastest growing telecommunications markets in Africa. It also owns an ISP licence.

"Our 100 per cent ownership of Multi-Links, therefore, not only meets Telkom's broader investment criteria but also provides us with the opportunity to expand our mobile capability," said Telkom CEO, Reuben September. Multi-Links' mobile subscriber growth since its 75 per cent acquisition by Telkom nearly two years ago has been impressive.

Since September 2007, the company has grown its customer base from 262,431 to more than 1.7 million subscribers as at 30 September 2008. At the same time, Multi-Links has effected network and capacity improvements that will bolster its ability to provide quality data products, especially to the corporate market.

September said” The value of the 25 percent purchase from Kenston Investment Ltd is US$130 million, the price having being determined by an independent expert”. Vanguard

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