Telkom CEO Sipho Maseko says that its acquisition of Business Connexion (BCX) is a deal 816 days in the making.<\/p>\n
Telkom announced publicly in May 2014, that it had entered into an agreement to acquire BCX in a R2.7 billion cash offer.<\/p>\n
The telco confirmed on 4 August that the Competition Tribunal had approved its acquisition of BCX.<\/p>\n
Telkom is acquiring the entire issued share capital of BCX, which will then delist from the JSE.<\/p>\n
Maseko said that as a result of the transaction, Telkom will be able to grow beyond its core business of connectivity by expanding into ICT services, while reinforcing its connectivity offering and enhancing Telkom\u2019s convergence strategy.<\/p>\n
Final approval will now be sought from the Takeover Regulations Panel and the JSE. BCX said it expects the transaction to be concluded by 25 August.<\/p>\n
Maseko told journalists at a press conference in Rosebank that while there are two small hurdles to overcome still, including a delisting of BCX, the companies hope to get started as early as next month – September.<\/p>\n
“Its an important growth leg. The Telkom story has been difficult over the last two years. The last hurdle is closer, rather than further away from us,’ Maseko said.<\/p>\n
“The real work starts now, Maseko said. It is probably one of the most important milestones in the turnaround of Telkom.”<\/p>\n
Isaac Mophatlane, who will remain CEO of BCX, said that regulatory conditions of the deal means that the maximum number of people the group can retrench is 60 people.<\/p>\n
For Telkom, the company may not increase prices for the affected products, while an on annual basis, the group will have to conduct an audit on whether it meets the requirements of the terms and conditions set out by the relevant regulatory bodies.<\/p>\n
BCX will remain a subsidiary within the Telkom group, and will not undergo a re-brand, or name change.<\/p>\n
The group announced in April, that the Telkom transaction costs had amounted to R7.7 million.<\/p>\n
Telkom-BCX deal gets thumbs up<\/a><\/strong><\/p>\n Telkom BCX deal gets shareholder approval<\/a><\/strong><\/p>\n Telkom\u2019s R2.67 billion BCX deal gets commission approval<\/a><\/strong><\/p>\n