Telkom, BCX deal set for final vote on 11 August

6 Aug 2014

South African network operator Telkom has revealed that 80% of Business Connexion (BCX) shareholders have given their written undertaking to support Telkom’s proposed acquisition of the technology company; a final vote of approval is scheduled for 11 August 2014. Meanwhile, TechCentral reports that the two companies have already submitted merger notifications to the Competition Commission (ComCom), in the unlikely event that BCX’s shareholders vote against the proposed deal; Telkom will have to wait twelve months before it is allowed to re-engage with the company.

In May 2014 Telkom proposed to buy the Johannesburg-listed BCX for ZAR2.7 billion (USD250.84 million) and delist it from the bourse. The move represents the second time in seven years that the South African telco has made an offer to buy out BCX; the transaction was previously blocked by ComCom due to the impact a potential Telkom/BCX merger would have on competition.

South Africa, Telkom South Africa