Telkom-BCX merger in final push for approval

Telkom and Business Connexion have submitted merger notifications to the competition authorities as the deal goes to shareholders for a final vote of approval.

Telkom announced in May 2013 that it has entered into an agreement to acquire the listed ICT group in a R2.7 billion cash offer funded from its own cash resources.

According to Business Connexion, key Shareholders – representing 80% of the Ordinary Scheme Shares – have given BCX written support for the proposed transaction.

However, the deal will be put to a vote on 11 August to get the official sign-off from shareholders.

The purchase includes the entire issued ordinary share capital of BCX, but excludes the BCX ordinary shares held by Business Connexion as treasury shares.

Telkom will pay to the ordinary shareholders a cash consideration of R6.60 per ordinary scheme share.

In a statement issued on SENS, BCX also notified shareholders that the original deal had been amended to allow the ICT firm to make distributions to shareholders of up to 20c per ordinary share before the implementation of the deal.

BCX was previously restricted to only repurchasing A shares in the deal.

Telkom said it would terminate the listing of the BCX ordinary shares on the main board of the JSE should the proposed transaction be implemented.

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Telkom-BCX merger in final push for approval