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The proposed strategic venture between Telkom and Korea Telecom (KT) won’t be going ahead.

Telkom has been informed by the Honourable Minister of Communications that the proposed transaction between the Companies had been presented to cabinet on 30 May 2012 and that cabinet had taken the decision not to support the transaction as proposed.

Telkom has advised shareholders that it will be engaging with the Minister of Communications to discuss cabinet’s decision and the implications thereof.

This engagement will seek to obtain clarity on the context of the decision given that Korea Telecom, and the transaction, were introduced to Telkom by government.

The proposed transaction, which has been ongoing for several months, involves KT buying 20% of Telkom, and was expected to aid Telkom in upgrading its infrastructure and services.

Last month KT and Telkom reached agreement on the acquisition, subject to shareholder approval.