Telkom says it remains “entirely committed” to the transaction with Business Connexion, adding that “the transaction will proceed”, pending final approval by The South African Competition Tribunal.<\/p>\n
Telkom announced in May 2014, that it had entered into an agreement to acquire the listed ICT group in a R2.7 billion cash offer.<\/p>\n
Telkom and BCX remain in ongoing discussions with the Independent Communications Authority of South Africa, as the regulator of this industry, the telco said.<\/p>\n
It said that both companies applied to SA regulator Icasa in August 2014, for written approval for a change in control of the shareholding of BCX from current shareholders of BCX, to Telkom.<\/p>\n
The proposed transaction between BCX\u2019s current shareholders and Telkom will result in Telkom acquiring the entire issued share capital of BCX.<\/p>\n
Telkom said that both companies further reviewed the Electronic Communication Act, with particular focus on sections 13(1) and 31(2A), after the initial proposal was made in May.<\/p>\n
“On reviewing these elements, the view has been taken that the application for the transfers of licenses from BCX to Telkom will not be required,” Telkom said.<\/p>\n
The application for the license transfer was therefore withdrawn from Icasa.<\/p>\n
Business Connexion in profit surge <\/strong><\/a><\/p>\n