KT Corp eyes stake in Telkom South Africa
17 October 2011 |
According to reports, South Korean operator KT Corp is in talks to acquire a 20% stake in Telkom South Africa.
Bloomberg highlighted that the South African telco’s shares had grown by 7.3% and local media has reported a deal worth as much as $586 million could be completed.
The potential deal could prove mutually beneficial for both companies. As a result of an increasingly saturated domestic market, KT has been exploring investment opportunities in emerging markets, and South Africa, where Telkom is the largest fixed-line operator, has proven to be an attractive proposition for international players, with the likes of Bharti airtel and Tata communications investing there in recent years.
Likewise, the support of a large partner may help Telkom’s position in an increasingly competitive mobile market, where it is aiming to capture a 15% over the next four years.