The short answer is "sometime within the next 12 months, if the transaction completes". The long answer depends on your views of the CPs (attached below - extracted from SENS). The Sale Transaction, the Distribution, the Listing and the Unbundling Transaction are inter-conditional so that none of them will be implemented unless the others become unconditional. Once all the conditions have been met, the Proposed Transaction will be implemented in the following sequence: i) first, the Sale Transaction; ii) second, the Listing; iii) third, the Unbundling Transaction; and iv) fourth, the Distribution. The Sale Transaction is conditional upon Telkom shareholder approval in terms of JSE Listings Requirements. The Sale Transaction is further subject to, inter alia, the fulfilment, or where applicable, waiver, of all regulatory and statutory approvals and consents as may be necessary, including, inter alia: i) the South African Competition Authorities; ii) the Tanzanian Competition Authorities; and iii) the Independent Communications Authority of South Africa. The Listing is subject to approval by the JSE. The declaration of the Distribution is subject to the approval by a majority of Telkom shareholders in general meeting. The Unbundling Transaction is subject to, inter alia, the fulfilment, or where applicable, waiver, of the following conditions precedent: i) approval of the Unbundling Transaction by 75% of Telkom shareholders in general meeting in accordance with section 228 of the Companies Act; and ii) approval by the JSE of the Listing. The conditions precedent referred to above must be fulfilled within 12 months of the signature date of the Transaction Agreements, or such other later date as may be agreed by the parties.
Okay, still some time to how this unfolds. BEE participants in the Vodacom deal got quite a discount - R25 a share. I think Vodacom is valued at around R106. I was hoping this BEE deal, like so many others, would tank long enough (once listing) for other people to benefit too ;)
The offical circular will only come out next year March - the BEE deal was R25 per share in Vodacom. Telkom is currently trading at R113. Vodacom's implied value is R106. Telkom will also issue a special dividend of R21. I don't know if i'm missing something but from the Telkom SENS, it seems as if this unbundling is highly beneficial to both parties and Telkom's NAV will actually increase 10%, with a 38% decrease in Headline earnings. I think if I can pick up Telkom shares at around 10000 cents - 10500 cents (assuming the unlikely conversion ratio of 1:1) with a dividend of R21 - 8400 cents seems like a good entry for either Telkom or Vodacom? The most important note of this transaction is that both companies will be able to expand into Africa. A lot of that isn't very clear right now but it's a start prior to the circular being distributed :) In the meantime, i've just put Telkom on my watchlist and I can start saving up!