Telkom South Africa Ltd., Africa’s largest fixed-line phone operator, fell to the lowest in more than nine years after it officially terminated talks with South Korea’s KT Corp.
“Shareholders are advised caution is no longer required to be exercised by shareholders when trading in the company’s securities,” the Pretoria-based company said in a statement today.
Telkom shares declined 1 percent to 18.01 rand at the 5 p.m. close in Johannesburg, the weakest price since June 2003.
Telkom said on June 1 that the South African government decided not to support the proposed sale of a 20 percent stake to KT Corp., South Korea’s largest phone and Internet company. The government is Telkom’s biggest investor with 39.8 percent of its shares and state-pensions manager the Public Investment Corp. owns an additional 9.7 percent, according to data compiled by Bloomberg.