Telkom and Business Connexion (BCX) are still awaiting approvals from four regulators before the telecommunications operator’s R2,7bn acquisition of the JSE-listed IT services company can be consummated.
In a statement to shareholders on Tuesday, BCX said the parties are still waiting for approval from South Africa’s Competition Commission, Botswana’s Competition Authority, the Common Market for Eastern and Southern Africa and the Independent Communications Authority of South Africa.
Telkom and BCX have already received the unconditional go-ahead from the Namibian Competition Commission (8 October) and the Tanzania Fair Competition Commission (13 October).
“BCX shareholders will be advised on Sens of a finalisation announcement, if and when the proposed transaction is approved by the relevant regulatory bodies, and the related salient dates for the implementation of the proposed transaction,” BCX said.
In August, BCX shareholders voted overwhelmingly in favour of a R2,7bn all-cash offer from Telkom, paving the way for the review by competition and telecommunications regulators.
Telkom is offering BCX shareholders R6,60/share to buy 100% of the company. The deal is seen as important for Telkom, which is keen to expand into higher value – and possibly higher margin – IT services to complement its telecoms business.
In July, BCX CEO Isaac Mophatlane said he hoped that transaction would be finalised by late November or early December. He warned, however, that it could be delayed if there was a challenge to it at the Competition Commission.
It’s the second time in seven years that Telkom has made an offer to buy BCX. The first time around, the competition authorities blocked the transaction fearing the impact it would have on competition in South Africa’s information and communications technology industry. — © 2014 NewsCentral Media
