Shareholders in South African ICT firm Business Connexion (BCX) have voted in favour of Telkom’s planned R2.67bn (US$257m) acquisition of the company.
Johannesburg-listed Telkom said in a statement that the required majority of votes was reached at a…
Shareholders in South African ICT firm Business Connexion (BCX) have voted in favour of Telkom’s planned R2.67bn (US$257m) acquisition of the company.
Johannesburg-listed Telkom said in a statement that the required majority of votes was reached at a meeting yesterday.
The deal is still subject to the approval of national competition authorities and communications watchdog Icasa. Telkom said it expects to announce the finalisation of the deal on 20 October, and for BCX to be delisted from the Johannesburg bourse on 11 November.
Telkom, the smallest of South Africa’s four mobile operators, agreed to buy BCX in late May. At the time, the company said BCX shareholders would receive R6.60 per share, a 20% premium on the company’s market price as of 15 April, prior to the cautionary announcement.
Telkom had tried to buy BCX seven years prior but run into regulatory hurdles. The company said the new bid formed part of its strategy to improve performance and expand into ICT services.
Telkom hired Absa Bank to advise it on the transaction, while BCX mandated Investec Bank.
South Africa’s dominant wireless player is Vodafone’s Vodacom, followed by MTN, Cell C and Telkom.
As reported yesterday, Telkom’s CFO Jacques Schindehutte has left the company following a disciplinary process. Deon Frederick, the company’s deputy CFO, has filled in for Schindehutte since the process began.
