Oct. 16 (Bloomberg) -- Telkom South Africa Ltd. and KT Corp. are drawing up contracts to complete a 4.6 billion-rand ($587 million) deal that would give the South Korean company a 20 percent stake in Africa’s biggest fixed-line phone company, Business Times said, citing Jim Myers, president of the American Chamber of Commerce.

Myers, a former Telkom executive, said there’s nothing in Telkom’s operations that would prevent KT from buying the stake, the Johannesburg-based newspaper reported. The transaction would give Telkom access to capital and KT’s telecommunications expertise, Business Times quoted Myers as saying.

--Editors: David McQuaid, James Kraus

To contact the reporter on this story: Jana Marais in Johannesburg at jmarais@bloomberg.net

To contact the editor responsible for this story John Viljoen at jviljoen@bloomberg.net