Telecoms7.11.2008
Telkom revenue to tumble
South African telecoms firm Telkom (TKG) said on Thursday the deal to get rid of its mobile phone assets will slash annual revenue by R21.8bn to R34.5bn.
Earlier Telkom said it would sell 15% of its 50% stake in Vodacom to joint owner Vodafone for R22.5bn and spin off the rest to shareholders.
Half of the sale proceeds will be handed out to shareholders through a special dividend and half retained to reposition itself through expansion and acquisitions.
EBITDA from its fixed-line business and other units would be cut from R20.6bn to R12.4bn after the transaction, but gross debt would be reduced to R15.2bn from R18.4bn after stripping off 50% of Vodacom debt.
Total cash would be boosted to R10.9bn from R1.7bn.
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