Telkom AR front.qxp

45. SUBSEQUENT EVENTS (continued)
Bookbuilding of Vodacom Group (Proprietary) Limited shares
Telkom Annual Report 2009 245
Notes to the consolidated annual financial statements (continued)
for the three years ended March 31, 2009
On June 2, 2009 Telkom announced the successful completion of the accelerated bookbuilding of Vodacom shares, raising R1,540 million
for "ineligible shareholders". The directors of Telkom, in consultation with Vodafone, determined that Telkom shareholders in the United States
of America would be regarded as "ineligible shareholders" for the unbundling of Vodacom shares to shareholders of Telkom, which was
completed on May 25, 2009, and would therefore not receive Vodacom shares in such distributions.
The proceeds from the offering, net of applicable fees, expenses, taxes and charges, will be distributed to the "ineligible shareholders" in
proportion to their entitlement to Vodacom shares.
New York Stock Exchange listing
Given the current global economic climate and the absolute necessity for Telkom to reduce its cost profile, the Board has decided to delist
from the New York Stock Exchange. Maintaining a listing in the United States of America is expensive and takes considerable management
time. The methodology employed and discipline gained from Sarbanes-Oxley reporting requirements will be retained to ensure strict
governance compliance and transparent financial reporting.
Telkom is comfortable that the Johannesburg Stock Exchange provides sufficient access to capital for both South African and global
investors. Telkom intends to maintain a level 1 American Depository Receipt programme to facilitate over-the-counter- trading in the United
States of America.
Telkom Communications International (Proprietary) Limited
The Abacus Financial Services (Mauritius) Limited issued a notice under section 265 (5) of the Companies Act 1984 that Telkom
Communications International (Proprietary) Limited has been dissolved with effect from May 12, 2009.
Other matters
The directors are not aware of any other matter or circumstance since the financial year ended March 31, 2009 and the date of this
report, or otherwise dealt with in the financial statements, which significantly affects the financial position of the Group and the results of
its operations.
46. ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED
The Group has not early adopted the following standards, interpretations and amendments that have been issued and are not yet effective:
IFRS1 First-time Adoption of International Financial Reporting Standards: Cost of an Investment in a Subsidiary, Jointly Controlled Entity
or Associate (amended)
This amendment is effective for annual periods beginning on or after January 1, 2009. This standard is amended to allow an entity, in its
separate financial statements, to determine the cost of investments in subsidiaries, jointly controlled entities or associates (in its opening IFRS
financial statements) as one of the following amounts:
• Cost determined in accordance with IAS27
• At the fair value of the investment at the date of the transition to IFRS, determined in accordance with IAS39 Financial Instruments:
Recognition and Measurement
• The previous GAAP carrying amount of the investment at the date of transition to IFRS
This determination is made for each investment, rather than being a policy decision.
The amendment does not have an impact on the annual financial statements.