Union, Solidarity, says it has met with Telkom in order to glean more information on its planned takeover of listed ICT firm, Business Connexion (BCX).
Telkom announced in May that it has entered into an agreement to acquire the group for R2.7 billion.
According to Solidarity, Telkom will take over BCX in its entirety and all 6,722 employees of BCX will be included in the takeover, after which BCX will function as an independent unit.
BCX’s personnel comprise 95% local and 5% foreign employees. About 67% of the employees are in BCX and the rest are in other companies operating under the BCX banner, the union added.
Telkom indicated that it wants to “[retain] BCX as a distinct operating unit in the Telkom retail stable, alongside Telkom business.”
The company plans to move Cybernest and its staff to BCX, which will serve as its IT arm, if its offer is accepted, Solidarity said.
The BCX shareholders will vote on the offer on 17 July 2014.
Telkom expects that if the shareholders, the Competition Commission and other institutions approve of the offer, the process will be completed during the first week of December 2014.