Telkom said on Tuesday that talks are ongoing with a consortium that is considering making an offer for the fixed-line telephone operator.

Telkom recently received a letter from a consortium comprising Mvelaphanda Holdings (Proprietary) Limited, affiliated funds of Och-Ziff Capital Management Group and other strategic funders, stating that it is considering making an offer for the entire issued share capital of Telkom subject to a number of pre-conditions, inter alia, confirmation by the Telkom Board that it will unbundle Telkom's entire 50 percent stake in Vodacom as part of the offer.

"The discussions with the Consortium are still ongoing and shareholders are therefore advised to continue to exercise caution when dealing in Telkom securities until a further announcement is made," Telkom said in a cautionary announcement.

The discussions with the consortium are independent of the discussions with UK group Vodafone regarding the acquisition by Vodafone's wholly owned subsidiary of a portion of Telkom's stake in Vodacom Group (Proprietary) Limited.

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