Business Connexion (BCX) board of directors have approved and declared a special gross cash dividend of 20 cents per ordinary share out of income reserves.
Telkom and Business Connexion have submitted merger notifications to the competition authorities as a merger deal between the two companies goes to shareholders for a final vote of approval.
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.
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.
BCX said in a SENS announcement that its board has concluded that the company will satisfy the Solvency and Liquidity Test immediately after payment of the special dividend.
As no secondary tax on companies´ credits are available, the special dividend will be subject to dividend withholding tax at a rate of 15%, which will result in a net dividend of 17,0 cents per ordinary share.
The special dividend has also been approved by the Takeover Regulation Panel, however, it is subject to receiving exchange control approval from the South African Reserve Bank.