Telkom has received the go-ahead from the Takeover Regulation Panel and the JSE for its R2,7bn all-cash acquisition of IT services group Business Connexion (BCX), meaning it has now received all of the necessary regulatory approvals.
The news comes in the same week that the Competition Tribunal has given its nod to the deal, albeit with a number of conditions.
Telkom CEO Sipho Maseko has said that those conditions, which include a freeze on increasing prices of certain products, are not onerous.
Maseko now says the parties intend consummating the transaction on 1 September. The deal is key to Telkom’s plans to become a bigger player in the faster-growing IT services market.
The process has taken a year to go through regulatory scrutiny.
Telkom said on Thursday that it has received the compliance certificate it needs from the Takeover Regulation Panel. The JSE has also given its written approval for the delisting of BCX shares.
Telkom will now pay BCX shareholders R6,60 in cash for every BCX ordinary share that they hold. — © 2015 NewsCentral Media