{"id":10985,"date":"2012-06-01T10:30:51","date_gmt":"2012-06-01T08:30:51","guid":{"rendered":"http:\/\/www.myza.co.za\/06\/update-1-safricas-telkom-says-govt-will-not-back-kt-deal\/"},"modified":"2012-06-01T10:30:51","modified_gmt":"2012-06-01T08:30:51","slug":"update-1-safricas-telkom-says-govt-will-not-back-kt-deal","status":"publish","type":"post","link":"https:\/\/www.myza.co.za\/press\/update-1-safricas-telkom-says-govt-will-not-back-kt-deal\/","title":{"rendered":"UPDATE 1- SAfrica&#8217;s Telkom says govt will not back KT deal"},"content":{"rendered":"<p>\t\t<span><\/span><\/p>\n<p>(Adds details)<span><\/span><\/p>\n<p><span><\/span><\/p>\n<p>* Says cabinet not backing deal as proposed<\/p>\n<p><span><\/span><\/p>\n<p>* Says to discuss implications with minister<\/p>\n<p><span><\/span><\/p>\n<p>JOHANNESBURG, June 1 (Reuters) &#8211; South Africa&#8217;s Telkom<br \/>\n said on Friday the government will not back its<br \/>\npartnership with KT Corp, a South Korean firm that<br \/>\nwants to buy a 20 percent post-issue stake in the fixed-lined<br \/>\ncompany.<\/p>\n<p><span><\/span><\/p>\n<p>South Korea&#8217;s No. 2 mobile operator last month cut is offer<br \/>\nfor the stake by nearly a third, bringing the total sale value<br \/>\ndown to about 3.3 billion rand ($385.46 million).<\/p>\n<p><span><\/span><\/p>\n<p>Telkom, which is majority owned by the South African<br \/>\ngovernment, said the proposed deal was presented to cabinet on<br \/>\nMay 30 and did not get the support it needed.<\/p>\n<p><span><\/span><\/p>\n<p>&#8220;Telkom was informed by the Minister of Communications &#8230;<br \/>\nthat (the) cabinet had taken the decision not to support the<br \/>\ntransaction as proposed,&#8221; it said in a statement.<\/p>\n<p><span><\/span><\/p>\n<p>Telkom said it will discuss the implications of the<br \/>\ncabinet&#8217;s decision with the minister.<\/p>\n<p><span><\/span><\/p>\n<p>Battered in recent years by steadily falling fixed-line<br \/>\nrevenue and expensive blunders in Nigeria, Telkom has been<br \/>\nlooking to offset shrinking demand for its core business by<br \/>\npushing into new businesses and markets.<\/p>\n<p><span><\/span><\/p>\n<p>The company has also been struggling to keep up with bigger<br \/>\nJohannesburg-based African mobile operators MTN and<br \/>\nVodacom.<\/p>\n<p><span><\/span><\/p>\n<p>KT has been scouring for opportunities in Africa, Latin<br \/>\nAmerica and Eastern Europe seeking to grow earnings as<br \/>\ncompetition back home heats up.<br \/>\n($1 = 8.5613 South African rand)\t<\/p>\n<p> (Reporting by Olivia Kumwenda)<\/p>\n<p><span><\/span><\/p>\n<p class=\"copyright\">\n<p>         \t\t\u00a9 Thomson Reuters 2012 All rights reserved<\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Adds details) * Says cabinet not backing deal as proposed * Says to discuss implications with minister JOHANNESBURG, June 1 (Reuters) &#8211; South Africa&#8217;s Telkom said on Friday the government will not back its partnership with KT Corp, a South Korean firm that wants to buy a 20 percent post-issue stake in the fixed-lined company. 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