Telkom-BCX deal stalls on approvals
The merger deal between Telkom and ICT firm Business Connexion (BCX) will miss its long-stop deadline of 30 April, as the companies still await approvals from authorities.
The deal is still awaiting approval from South African competition authorities and Icasa, Telkom announced on Thursday (30 April).
“Upon receipt of the above approvals, final approval of the Proposed Transaction will be sought from the Takeover Regulation Panel,” Telkom said.
In the meantime, the group noted that the deadline for the implementation of the merger has been pushed back to 31 May 2015.
Telkom announced in May 2013 that it had entered into an agreement to acquire the listed ICT group in a R2.7 billion cash offer funded from its own cash resources.
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, and will terminate BCX’s listing on the main board of the JSE once the deal gets final approval.
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