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BCX, Telkom $245.5m Merger Given Go-ahead


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Nigeria

IMAGE: Isaac Mophatlane, BCX CEO »

October.21.2014

JSE-listed IT solutions firm, Business Connexion (BCX), on Tuesday said the Nambian Competition Commission and Tanzania’s Fair Competition Commission had unconditionally approved the R2.7 billion ($245.5 million) acquisitive offer from South Africa’s biggest fixed line operator, Telkom.

But the company said it was still awaiting approval from the South African competition authorities and the deal is still on track.

These authorities include the Competition Commission of South African, the Competition Authority of Botswana, the Common Market for Eastern and Southern Africa (COMESA) Commission and the Independent Communications Authority of South Africa (ICASA).

“Upon receipt of the above approvals, final approval will be sought from the Takeover Regulations Panel (TRP) and the Johannesburg Stock Exchange (JSE),” BCX said.

Earlier this year, Telkom proposed to pay BCX shareholders R6.60 a share to acquire 100 percent of BCX in a transaction understood to be very critical to the fixed line operator. Shareholders representing 80 percent of BCX’s equity have voted in favour of the deal.

Isaac Mophatlane, BCX CEO, had expected the transaction to be finalised later this year. Isaac took over from his brother, Benjamin, who died suddenly of a heart attack a couple of months back. He was 41.

Benjamin died when he was on the verge of signing one of his most lucrative transactions in a career spanning a little more than two decades.
Shortly before his sudden death, Telkom had said it wanted to acquire the entire issued share capital of BCX.

The Telkom announcement came shortly after Vodacom, South Africa’s biggest mobile operator, had proposed to acquire a major stake in Neotel, a South African fixed line operator which is majority-owned by India-based Tata Corporation.

This flurry of acquisitions in this sector prompted one analyst to claim that this was the beginning of consolidation in South Africa’s mobile and fixed line sectors.

Article Credit: Ventures-africa

Updated 4 Years ago
 

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Tags:     Business Connexion     Telkom     COMESA     ICASA     Isaac Mophatlane    

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