Telkom SA SOC Limited Seeks Noteholder Consent for Amendments to Note Programme

Telkom SA SOC Limited has recently issued a notice to its noteholders regarding proposed amendments to its Domestic Medium Term Note Programme and applicable pricing supplements. This move is part of Telkom’s strategic efforts to align its financing arrangements and optimize its financial operations. Let’s delve into the details of this development and its implications.

Background

Telkom SA SOC Limited, with registration number 1991/005476/30, operates within the framework of the Republic of South Africa. The company’s JSE Bond Code is BITEL, and its JSE Share Code is TKG. Telkom plays a crucial role in the telecommunications sector, providing a wide range of services to both individual consumers and businesses.

Purpose of Amendments

The primary objective behind the proposed amendments is to update and align the terms and conditions of Telkom’s ZAR15,000,000,000 Domestic Medium Term Note Programme and the applicable pricing supplements for specific instruments. These adjustments are designed to streamline Telkom’s financing framework and enhance operational efficiency.

Proposed Amendments Overview

Telkom seeks consent from noteholders for the following extraordinary resolutions:

1. Extraordinary Resolution No. 1: Amend and restate the Programme Memorandum to enable periodic issuance of notes.
2. Extraordinary Resolution No. 2: Amend and restate the terms and conditions of the Applicable Pricing Supplements related to various note categories.

Impact on Noteholders

Noteholders, as stakeholders in Telkom’s financial ecosystem, play a pivotal role in shaping these amendments. Their consent through written extraordinary resolutions will determine the implementation of the proposed changes. It’s essential for noteholders to carefully review the details provided in the Consent Request and make informed decisions regarding their votes.

Documentation and Instructions

Telkom has made available the marked-up drafts of the amended Programme Memorandum and Applicable Pricing Supplements on its official website. Noteholders are encouraged to review these documents thoroughly. The voting process requires completion of the Consent Notice and submission to the relevant Participant by the specified deadline, along with copies sent to Rand Merchant Bank and Telkom.

Record Date and Timeline

The record date for receiving the Consent Request is 27 March 2024. Noteholders must submit their completed Consent Notices by 17h00 on 25 April 2024, adhering to the outlined instructions. Failure to meet the deadline may result in non-participation in the voting process.

Table: Telkom’s Notes in Issue

Conclusion

Telkom’s request for written consent from noteholders underscores its commitment to maintaining transparent and collaborative relationships within the financial community. The proposed amendments aim to enhance the efficiency and effectiveness of Telkom’s financing activities, benefiting both the company and its stakeholders. Noteholders are urged to carefully review the provided materials and participate actively in the voting process to contribute to the evolution of Telkom’s financial landscape.