What do you guys think about the R19 offer?

[#1]

According to my calculations this puts Telkom at almost next to nothing after the split happens?????

[JohnnyCash]

That's only part of the whole deal. They'll payout R19 which is 50% of the after tax and debt proceeds from the sale of 15% in Vodacom. That leaves around R20 cash (the other 50%) in Telkom to spend. Then they'll also give you the remaing 35% in Vodacom seperately. Roughly, if 15% yields around R40 it means the Vodacom value in shares you can receive if around R80? Thats an extraction of R100 value with R20 cash left in Telkom as well as the whole fix line business. There should also be an additional R6 to R10 yearend dividend as well.

[platsak]

Till when can one enter to qualify?

[JohnnyCash]

Nothing's been finalised due to the conditions still to be met. final Dates should be around March.

[#5]

Less the R40, Telkom is worth like 80, minus 35% Vodacom - What a deal!

[JohnnyCash]

Just remember this deal was already anounced in November last year and didnt result in any uptick on the share. Maybe the market dont think it is a great deal or maybe worry due to the current global markets that Vodafone may pull out of the deal to to uncertain markets! But ultimately if it does come off at least you can see there will be value unlocked

[#7]

I agree, price has been much more stable as compared to MTN, will not go up by much untill exact amounts and dates come out.

[Abundant_Lifest]

Why are there no SBK instalments on TKG? Please Simon speak to your people. A good dividend gearing!

[#9]

Johnny, why you think that? I think once final figures are out and amount vodacom is listing will bring a big increase

[#10]

The only possible flaw could be that Vodacom could have bought at a premium???