Telkom ‘committed’ to R2.7 billion Business Connexion deal

Telkom says it remains “entirely committed” to the transaction with Business Connexion, adding that “the transaction will proceed”, pending final approval by The South African Competition Tribunal.

Telkom announced in May 2014, that it had entered into an agreement to acquire the listed ICT group in a R2.7 billion cash offer.

Telkom and BCX remain in ongoing discussions with the Independent Communications Authority of South Africa, as the regulator of this industry, the telco said.

It said that both companies applied to SA regulator Icasa in August 2014, for written approval for a change in control of the shareholding of BCX from current shareholders of BCX, to Telkom.

The proposed transaction between BCX’s current shareholders and Telkom will result in Telkom acquiring the entire issued share capital of BCX.

Telkom said that both companies further reviewed the Electronic Communication Act, with particular focus on sections 13(1) and 31(2A), after the initial proposal was made in May.

“On reviewing these elements, the view has been taken that the application for the transfers of licenses from BCX to Telkom will not be required,” Telkom said.

The application for the license transfer was therefore withdrawn from Icasa.

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Telkom ‘committed’ to R2.7 billion Business Connexion deal