Telkom will no longer seek the permission of communications regulator Icasa for its proposed R2,7bn acquisition of Business Connexion (BCX), the telecommunications operator said on Tuesday.
This is because the two companies, acting on legal advice, felt it was not necessary to get Icasa’s approval to transfer licences from BCX to Telkom. The two companies applied to Icasa in August 2014 for written approval for a change in control of BCX’s shareholding to Telkom.
“Subsequent to this application, both BCX Group and Telkom have further reviewed the Electronic Communications Act, with particular focus on sections 13(1) and 31(2A). On reviewing these elements, the view has been taken that the application for the transfers of licenses from BCX Group to Telkom will not be required.”
Telkom said the application for the licence transfer has been withdrawn from Icasa. However, the deal must still be approved by the competition authorities.
“Both Telkom and BCX Group remain entirely committed to the transaction,” Telkom said. The companies “remain in ongoing discussions with Icasa as the regulator of this industry”.
“The proposed transaction between BCX Group’s current shareholders and Telkom will result in Telkom acquiring the entire issued share capital of BCX Group in terms of an implementation agreement entered into between the parties on 21 May 2014.” — (c) 2015 NewsCentral Media