Telkom granted R1 billion in financial assistance to its information and communications technology subsidiary Business Connexion (BCX) for working capital and debt commitments, it announced on Monday.<\/p>\n
\u201cThe board of directors of the company have adopted a resolution granting financial assistance to Business to provide for working capital requirements, settle certain debt commitments, as well as to provide funding for future expansion,\u201d\u00a0 Telkom said in a statement.<\/p>\n
\u201cThis is aligned with our announced strategy of integrating our enterprise business with BCX as our go to market entity providing a truly converged business offering end to end solutions to our enterprise customers.”<\/p>\n
The financial assistance was approved at the annual general meeting of the company held on 24 August 2016.<\/p>\n
The Telkom board confirmed that after providing the financial assistance, BCX would be able to pay its debts as they became due in the ordinary course of business for a period of 12 months after following the granting of the financial assistance.<\/p>\n
In 2014, BCX shareholder voted overwhelmingly in favour of Telkom\u2019s acquisition of the company and in 2015 the Competition Tribunal of South Africa green-lit the R2.6 billion merger deal.<\/p>\n
Telkom also announced in the statement on Monday that it would invest R155 million in Acajou Investments Proprietary Limited, a 100% subsidiary for a new business venture in the digital gaming arena that would be renamed Digital Gaming League.<\/p>\n