BCX-Telkom transaction costs hit R7.7 million

JSE-listed ICT services provider Business Connexion on Thursday reported a 16% rise in revenue to R3.6 billion for the interim period ended February 2015.

“This growth was underpinned by organic revenue growth of 15,1% resulting from new client wins,” Business Connexion said.

Operating profit declined to R161.8 million, from R 300 million in 2014, however, normalised operating profit increased by 25.7% to R199.4 million. In 2014, the group reported a R171.8 million profit on the sale of QLink.

The group generated diluted earnings per share (EPS) of 17.6 cents for the period (2014: 52 cents) and diluted headline EPS for the period of 17.7 cents (2014: 15.6 cents).

On a normalised basis, excluding primarily the profit on the sale of QLink and the impact of the amortisation of intangibles, BCX reported diluted headline EPS of 25.9 cents, from 20.7 cents in 2014.

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

On 11 August 2014, shareholders voted in favour of the offer by Telkom. The proposed transaction is now awaiting a recommendation from the Competition Commission of South Africa to the Competition Tribunal.

BCX said that Telkom transaction costs had thus far amounted to R7.7 million.

Approval from the Common Market for Eastern and Southern Africa (COMESA) Commission was received on 16 March 2015.

“Upon receipt of the above approvals, final approval will be sought from the Takeover Regulations Panel (TRP) and the JSE Limited,” BCX said.

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BCX-Telkom transaction costs hit R7.7 million