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TKG - Telkom SA Limited - Telkom signs heads of agreement on Multi-Links with an

Release Date: 28/06/2011 17:35
Code(s): TKG
Wrap Text

TKG - Telkom SA Limited - Telkom signs heads of agreement on Multi-Links with an affiliate of Helios Towers Nigeria Telkom SA Limited (Registration number 1991/005476/06) JSE share code: TKG ISIN: ZAE000044897 ("Telkom") Pretoria Telkom signs heads of agreement on Multi-Links with an affiliate of Helios Towers Nigeria Telkom shareholders are referred to the announcement on 13 June 2011 regarding the failure to sell the CDMA business of Multi-Links Telecommunications Limited ("Multi-Links") to Visafone Communications as a result of the fact that certain conditions precedent had not been met, and the Telkom Board`s decision to stop funding Multi-Links. Telkom has now reached an agreement with an affiliate of Helios Towers Nigeria, Limited ("HTN") on the future of Multi-Links. Under the terms of the heads of agreement, which is subject to the relevant approvals, the affiliate of HTN will acquire full ownership and control of Multi-Links. The entire issued share capital of Multi-Links will be sold for a consideration which, depending on the achievement of certain conditions, will be USD10 000 300,00. Telkom will continue to provide interim operational funding to Multi- Links to enable completion of the transaction which is expected to be in August 2011. Telkom will participate in a portion of any upside above a certain threshold in the event of a disposal Multi-Links or its assets by an affiliate of HTN on or before three years of deal completion. The participation portion is dependent on the lapse of certain time periods. 28 June 2011 Sponsor: UBS South Africa (Pty) Ltd Special note regarding forward-looking statements Many of the statements included in this announcement, as well as oral statements that may be made by us or by officers, directors or employees acting on behalf of us, constitute or are based on forward looking statements. All statements, other than statements of historical facts, including, among others, statements regarding our mobile and other strategies, future financial position and plans, objectives, capital expenditures, projected costs and anticipated cost savings and financing plans, as well as projected levels of growth in the communications market, are forward looking statements. Forward looking statements can generally be identified by the use of terminology such as "may", "will", "should", "expect", "envisage", "intend", "plan", "project", "estimate", "anticipate", "believe", "hope", "can", "is designed to" or similar phrases, although the absence of such words does not necessarily mean that a statement is not forward looking. These forward looking statements involve a number of known and unknown risks, uncertainties and other factors that could cause our actual results and outcomes to be materially different from historical results or from any future results expressed or implied by such forward looking statements. Among the factors that could cause our actual results or outcomes to differ materially from our expectations including but not limited to those risks identified in Telkom`s most recent annual report which are available on Telkom`s website at www.telkom.co.za/ir. We caution you not to place undue reliance on these forward looking statements. All written and oral forward looking statements attributable to us, or persons acting on our behalf, are qualified in their entirety by these cautionary statements. Moreover, unless we are required by law to update these statements, we will not necessarily update any of these statements after the date of this document, either to conform them to actual results or to changes in our expectations. Date: 28/06/2011 17:35:01 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.

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