Telkom sale: SBC gets $542m

BTTB

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#1
http://www.finance24.co.za/Finance/Companies/0,,1518-24_1544508,00.html?kps=193

Telkom sale: SBC gets $542m
18/06/2004 08:11 - (SA)

Washington - SBC Communications Inc said on Thursday it sold half of its indirect holdings in telecommunications provider Telkom SA to South African and international institutional investors for about $542m (R3.58bn).

The San Antonio-based phone company expects a second-quarter after-tax loss of $45m from the sale.

SBC now indirectly owns 9% of Telkom.

Thintana Communications, which holds the Telkom shares beneficially owned by SBC, has agreed not to sell its remaining shares before November 22.

Telkom said on Thursday it won't be allowed to participate in Thintana's share placement, wherby the company intended selling up to 83 million of its ordinary shares in Telkom through a bookbuilt offering.

Telkom said in a statement, that although its shareholders granted it authority to buy the shares on the open market, the JSE listing requirements does not allow it to participate in the Thintana share placement.

The group added, however, that it would continue to consider the purchase of shares in its own capital on the open market under the terms of its existing authority.

New York Stock Exchange-listed SBC shares closed at $24.54, up 10c on Thursday.

Telkom ended the day 51c down at R73.49 on the JSE and 1.1% softer on the New York Stock Exchange.

Edited by Fadia Salie

<b><hr noshade size="1"></b><font size="2"><font color="red"><b>You can take Telkom out of the Post Office but you can't take the Post Office out of Telkom.</b></font id="red"></font id="size2">
 

MaD

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#2
Seems they getting out... the sooner the better, the country needs this.

<font color="navy"><font size="1"><b>Where others have progress, we have Telkom.</b>
Hellkom website - http://telkomsucks.0catch.com</font id="size1"></font id="navy">
 

BTTB

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But the problem is the fact that until November 22, Telkom will still be dictated by them with their agreement that they can continue to enjoy managerial control over the board. What sort of control I'm not sure, but it's the same control they had with the 30% stake they had before. So although they have cashed in and got a lovely cash windfall, they will still be able to control the destiny of Telkom in the short term. <blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica" id="quote">quote:<hr height="1" noshade id="quote">Following the placement, Thintana entered a lockup agreement, which bars it from selling its remaining 15.1% Telkom stake until Telkom announces its interim financial results on November 22.<hr height="1" noshade id="quote"></blockquote id="quote"></font id="quote">
And I’m not sure that everything is going to pan out if Telkom buy back these shares. Anyway Telkom has hit a snag on the JSE apparently. Not sure what.

Maybe this will shed some light: <blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica" id="quote">quote:<hr height="1" noshade id="quote">Telkom said in a statement that although its shareholders granted it authority to buy the shares on the open market, the JSE listing requirements does not allow it to participate in the Thintana share placement.<hr height="1" noshade id="quote"></blockquote id="quote"></font id="quote">

Telkom stake sold for R6.05bn
18/06/2004 11:37 - (SA)

Fadia Salie
Cape Town - The international consortium Thintana Communications, which until Friday owned 30% of Telkom SA, has halved its stake in the South African telecoms giant for a total consideration of $915m (R6.05bn).

The two stakeholders - Telekom Malaysia, who owns 40% of Thintana, and US-listed SBC Communications with 60% - announced in separate statements to their respective stock exchanges that they made $373m (R2.47bn) and $542m (R3.58bn) respectively from selling half of their stakes in Telkom to South African and international institutional investors.

Prior to the placement via a bookbuilt process, Telekom Malaysia owned 12% of Telkom and SBC Communications 18% through Thintana.

The Telkom shares were sold at R73 each, or 0.7% lower than the stock's close on Thursday on the JSE Securities Exchange.

Both companies now own indirect stakes of 6% and 9% respectively in Telkom SA.

Following the placement, Thintana entered a lockup agreement, which bars it from selling its remaining 15.1% Telkom stake until Telkom announces its interim financial results on November 22.

Telkom said on Thursday it was not allowed to participate in Thintana's share placement, whereby the company intended selling up to 83 million of its ordinary shares in Telkom through a bookbuilt offering.

Telkom said in a statement that although its shareholders granted it authority to buy the shares on the open market, the JSE listing requirements does not allow it to participate in the Thintana share placement.

The group added, however, that it would continue to consider the purchase of shares in its own capital on the open market under the terms of its existing authority.

Telkom reported earlier this month an impressive 175% jump in annual headline earnings per share to 864c, from 314c a year ago.

A final dividend of 110c a share was declared, which together with the special dividend of 90c a share, makes a total of 200c for the year.

By 11:00 on Friday on the JSE, Telkom shares were changing hands 1.6% or 121c higher at R74.70. - AFP/ Dow Jones Newswires


<b><hr noshade size="1"></b><font size="2"><font color="red"><b>You can take Telkom out of the Post Office but you can't take the Post Office out of Telkom.</b></font id="red"></font id="size2">
 
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