South Korea’s KT Corp has announced that it has reached a preliminary agreement to buy a 20% stake in Telkom South Africa, at a reduced price of around USD427 million. The deal means that the Korean firm intends to pay ZAR25.60 (USD3.26) per share for the stake, noticeably lower than the ZAR36.06 a share price-tag that KT agreed to pay Telkom in October 2011. KT Corp has indicated that the change reflects a decline in the share price of the South African company, with the original deal valuing the stake at around USD600 million. A KT spokesperson commented: ‘The deal hasn’t been finalised yet as there are more conditions to be met, but it’s true that we’ve agreed on the value of the deal’. KT’s interest in Telkom is expected to form part of its future strategy to turn its attention away from its oversaturated domestic market and look for overseas growth.
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