Telkom looks set to go it alone in the local cellular market, but prepare for some complexity.
01 November 2008
Fixed-line telecommunications provider Telkom is confident it can go it alone in the local cellular market. This after the company announced its intention to dispose of its 50 percent shareholding in cellular giant Vodacom.
Shareholders Telkom and Vodafone have been in negotiations for some time, last month announcing a R22.5 billion deal that will see Vodafone own another 15 percent stake in Vodacom. This effectively increases its stake in Vodacom to 65 percent.
The deal is subject to Telkom unbundling its remaining 35 percent stake in Vodacom to shareholders. Once complete, Vodacom will list on the main board of the Johannesburg Stock Exchange.
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