Telkom’s acquisition of listed ICT firm Business Connexion (BCX) is on track, with only regulatory approvals blocking the path, BCX says.
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.
In a SENS announcement on Tuesday (21 October) BCX notified shareholders that both parties are awaiting the following approvals:
- Approval from the Competition Commission of South African
- Approval from the Competition Authority in Botswana
- Approval from the Common Market for Eastern and Southern Africa (COMESA) Commission
- The Independent Communications Authority of South Africa (ICASA).
“Upon receipt of the above approvals, final approval will be sought from the Takeover Regulations Panel (TRP) and the Johannesburg Stock Exchange (JSE),” BCX said.
Unconditional approvals have been obtained from the following regulatory bodies:
- The Namibian Competition Commission on 8 October 2014
- The Tanzania Fair Competition Commission on 13 October 2014
“The transaction is still on track as we await the appropriate regulatory approvals noted above,” the ICT firm said.