Telkom Media still in limbo

Telkom sells its stake in Telkom Media

Telkom has managed to avert the winding up of Telkom Media by selling its 75% interest in and claims against Telkom Media (Proprietary) Limited to Shenzhen Media South Africa (Proprietary) Limited ("Shenzhen") for a nominal amount.

Last year, on 31 March 2008, Telkom announced its decision to significantly reduce its investment in Telkom Media. Subsequently, various expressions of interest were considered, some of which led to further negotiations with interested parties in a process to find a new majority shareholder for Telkom Media.

However, the process was unsuccessful and on 25 March 2009 Telkom announced that a Telkom Media shareholders’ meeting had been called to approve the winding up of Telkom Media. On 16 April 2009, Telkom Media’s shareholders unanimously voted in favour of a special resolution to wind up Telkom Media.

"In a final attempt to prevent the winding-up of Telkom Media, Telkom launched an accelerated sale process for Telkom Media shareholder´s equity and loan accounts. In terms of this process, Telkom was only prepared to consider unconditional offers backed with adequate financial guarantees. An invitation was sent to parties who, in one way or the other, had expressed an interest in Telkom Media," said Naas Fourie, Telkom’s Chief of Strategy.

The accelerated process resulted in a Share Sale Agreement being signed with Shenzhen on the evening of 29 April 2009, in terms of which Telkom disposed of its shareholding and loan account in Telkom Media on a “voetstoots” basis. The transaction closed on 4 May 2009.

Naas added: "There were no conditions precedent included in the Share Sale Agreement which enabled the quick conclusion of the deal. Shenzhen agreed to procure Telkom Media and to change its name within 30 days of closing."

Regarding the future plans of Telkom Media, Naas stated that "decisions relating to Telkom Media's future operations will now be in the hands of Shenzhen as the new majority shareholder".

Issued by:

Group Communication and Brand
Click to expand...
What I got on it
 
I wonder what sort of channels will be broadcast. The "Canine-cooking" channel? I have a wonderful recipe for roasted Collie that I have been dying to try. :D
 
ODM was aiming at Q2, but has postponed till Q4 last time i heard.

think its somewhere on there site, funding issues or somethn
 
What about ICASA

The Independent Communications Authority of SA (Icasa) is "still applying its mind" to the implications of Telkom selling its media unit to a Chinese company, an official said on Thursday.

"We received a letter yesterday [Wednesday] morning in which Telkom was informing us of the decision. We are going through the content of that letter and applying our minds," said Icasa spokesperson Sekgoela Sekgoela.

He said Icasa needed to "engage" with Telkom on the sale to Shenzhen Media, a Chinese media company which owns four Chinese radio stations.

Asked whether the sale meant that Shenzhen would automatically own the pay-TV broadcasting licence Icasa granted to Telkom Media, Sekgoela replied: "I do not want to pre-empt Icasa's response. We need to understand the issues at play.

"We need to look at the implications. There are issues of foreign ownership and many other issues at hand."
 
Applying their minds?

WTF?... the license states x... Telkom Media have done Y by selling to Shenzen... therefore license needs to be reapplied for.. done and dusted if you ask me.. no issue.
 
sigma said:
"We need to look at the implications. There are issues of foreign ownership and many other issues at hand."
Click to expand...

Why on earth are these idiots worried about foreign ownership? It's not like they had an issue with it when Telkom was basically foreign owned.
This time it's not a monopoly like Telkom, it'll be the competition! If the foreign owners/investors screw it up, people won't buy it, simple as that.

Or are they afraid that an international corporation will demonstrate how far behind SA actually is and force people to ask questions guavamunt isn't prepared or ready to answer?
 
You must log in or register to reply here.
Back
Top
Sign up to the MyBroadband newsletter
X