Telkom AR front.qxp

Notes to the annual financial statements (continued)
for the three years ended March 31, 2009
38. SIGNIFICANT EVENTS (continued)
Capability Management (continued)
• Enable Telkom South Africa, Telkom International and Telkom Data Centre Operations to:
– Improve resource efficiency;
– Improve capital productivity; and
– Improve service delivery.
Telkom Annual Report 2009 331
A memorandum of understanding was entered into between Telkom and organised labour which included issues such as the deferment of
the Managed Services Partner outsourcing project implementation post April 2009 and the establishment of a restructuring forum where all
restructuring initiatives will be debated between the parties concerned.
Telkom Management Services (Proprietary) Limited (TMS)
TMS was registered as a company during August 2008. Telkom’s Board approved the establishment of TMS as a part of Telkom’s strategic
plan to grow revenue and expand geographic reach.
Appointment of director
On November 10, 2008, Telkom announced the appointment of Mr Peter Nelson as Chief Financial Officer and director of the Company
with effect from December 8, 2008.
39. SUBSEQUENT EVENTS
Dividends
The Telkom Board declared an ordinary dividend of 115 cents (2008: 660 cents, 2007: 600 cents) per share and a special dividend
of 260 cents (2008: Nil cents, 2007: 500 cents) per share on June 19, 2009, payable on July 20, 2009 to shareholders registered on
July 17, 2009.
Acquisition of MWEB Africa Limited and majority equity stake in MWEB Namibia (Proprietary) Limited
On November 10, 2008, Telkom International (Proprietary) Limited, a wholly owned subsidiary of Telkom, announced it had entered into
agreements to acquire 100% of MWEB Africa Limited (‘MWEB Africa’) and 75% of MWEB Namibia (Proprietary) Limited (’MWEB
Namibia‘) . The purchase price for the MWEB Africa Group including AFSAT and MWEB Namibia is US$55 million (approximately R498
million) with a deferred payment of US$14,18 million due when the profits of MWEB Group for the year ended March 31, 2009 are
finalised. These shareholdings will be acquired from Multichoice Africa Limited and MIH Holdings Limited respectively, which are members
of the Naspers Limited Group.
MWEB Africa is an internet services provider in sub-Saharan Africa (excluding South Africa) which also provides network access services
in some countries and is headquartered in Mauritius with operations in Namibia, Nigeria, Kenya, Tanzania, Uganda and Zimbabwe, an
agency arrangement in Botswana and distributors in 26 sub-Saharan African countries.
The acquisition of MWEB is part of the Group’s strategy of growing its broadband and solidifying its market position through acquisitions.
The successful conclusion of the agreements being entered into is subject to conditions precedent, including regulatory approvals being
obtained in certain African jurisdictions.
Subsequent to year end, on April 21, 2009, the conditions precedent to the sale were fulfilled.
AT&T strategic agreement
On April 16, 2009, Telkom and AT&T, the global communications leader, entered into a strategic agreement which aims to extend AT&T’s
global networking reach to sub-Saharan Africa and boost Telkom’s strategy to grow a strong ICT footprint on the African continent. The
agreement will allow both companies to explore ways to provide global seamless communication and technology solutions and services
to multinational customers, ether based in or seeking to extend their operations in sub-Saharan Africa.
Under the terms of the memorandum of understanding, the two companies will begin work towards definitive agreements that would
• directly connect the Telkom regional network and the AT&T global network;
• deliver a wider geographic footprint of telecommunication services, in both sub-Saharan Africa and other global points;
• enhance mobile service capabilities for corporate customers in sub-Saharan Africa;
• extend global VPN (Virtual Private Network) services to support the state of art network requirements of customers either headquartered
in or seeking to expand sites in sub-Saharan Africa;
• explore other potential opportunities in areas such as Telepresence, hosting and professional services; and
• expand the existing global wholesale voice services relationship between Telkom Group and AT&T.