Business Connexion (BCX) shareholders will next week vote on whether to accept Telkom’s R2,7bn all-cash offer to buy them out.
But the deal looks set to pass, with Telkom saying on Tuesday that 80% of shareholders have given their written undertaking to support the proposed deal.
The meeting, which will take place on Monday, 11 August, comes as Telkom says it has filed notification of its planned acquisition with the competition authorities.
Last week, BCX CEO Isaac Mophatlane said he hopes the transaction is finalised by late November or early December. He warned, however, that it could be delayed in the proposed deal is challenged at the Competition Commission.
Telkom is offering R6,60/share. It’s the second time in seven years that the company has made an offer to buy the JSE-listed IT services company. The first time around, the competition authority blocked the transaction fearing the impact it would have on competition in the information and communications technology industry.
But Mophatlane said the market has changed significantly since then and Telkom is no longer in the dominant position it was then. Both the Competition Commission and communications regulator Icasa will have to give the deal the nod, he said.
In the unlikely event that BCX’s shareholder vote against the proposed Telkom deal at the meeting on Monday, JSE rules require that the telecommunications operator will have to wait 12 months before it is allowed to re-engage with the company. — © 2014 NewsCentral Media