On the Money News - In Brief
KT Corporation is in talks with Telkom SA Limited about entering into a Memorandum of Understanding regarding a potential strategic venture and acquisition of a stake in Telkom. Should the two companies reach an agreement, KT would buy Telkom ordinary shares, by way of a specific issue of Telkom shares, at a price of ZAR 36.06 per share, which if implemented would result in KT having a 20% interest in the post-issue ordinary share capital of Telkom (about USD600m).
There is no certainty at this stage that these talks between KT and Telkom will lead to a formal transaction and further information will be announced in due course. KT is an integrated telecommunications service provider in the Republic of Korea. The company is active in fixed telephony, mobile, broadband, satellite, and IPTV. KT has a market capitalisation of approximately USD10 billion. In 2010, KT reached circa USD18.7 billion of operating revenues with earnings before interest, tax, depreciation and amortisation (“EBITDA”) of circa USD4.7 billion. KT is a market leader in the Republic of Korea’s fixed and broadband segment with a 86% and 45% market share respectively (c.19.2m and c.7.7m of subscribers) and number 2 in the mobile business (32% market share, with approximately 16.8m subscribers). Additional information about KT can be found by visiting here: