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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
According to Business Connexion, key Shareholders \u2013 representing 80% of the Ordinary Scheme Shares \u2013 have given BCX written support for the proposed transaction.<\/p>\n
However, the deal will be put to a vote on 11 August to get the official sign-off from shareholders.<\/p>\n
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.<\/p>\n
As no secondary tax on companies\u00b4 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.<\/p>\n
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.<\/p>\n
Telkom-BCX merger in final push for approval<\/strong><\/a><\/p>\n Telkom and BCX suspend talks to mourn CEO<\/a><\/strong><\/p>\n Telkom target BCX buys into Nigerian firm<\/a><\/strong><\/p>\n