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Telkom, BCX deal gets shareholder approval

12 Aug 2014

The shareholders of South African technology company Business Connexion (BCX) have voted overwhelmingly in favour of a ZAR2.7 billion (USD250.84 million) takeover bid from domestic telecoms operator Telkom, paving the way for the merger deal to be reviewed by the Competition Commission (ComCom) and telecoms watchdog Icasa, TechCentral reports. The takeover 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.

As previously reported by TeleGeography’s CommsUpdate, in May 2014 Telkom proposed to buy 100% of Johannesburg-listed BCX and delist it from the bourse. In early August Telkom revealed that 80% of BCX shareholders had already given their written undertaking to support its proposed acquisition of the technology company. BCX CEO Isaac Mophatlane said he hoped that the transaction would be finalised by late November-early December, although he warned that it could be delayed if the deal was challenged by ComCom.

South Africa, Telkom South Africa

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