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Shareholders to vote on BCX deal

Staff Writer
By Staff Writer, ITWeb
Johannesburg, 11 Jul 2014
Buying BCX will give Telkom scale to expand into IT services, CEO Sipho Maseko has said.
Buying BCX will give Telkom scale to expand into IT services, CEO Sipho Maseko has said.

Business Connexion (BCX) has called a general meeting for 11 August at which its shareholders will vote on Telkom's R2.67 billion offer for the company.

In a statement to stockholders, it says votes will also be tallied in consideration of the proposed amendment of its existing share incentive schemes and to approve the establishment of a new retention and incentive plan.

The meeting will be held from 10am in its Midrand auditorium, it says. Today's posting of the circular to shareholders follows a break in discussions after BCX CEO Benjamin Mophatlane died.

Deputy CEO Vanessa Olver has been appointed acting CEO.

The Takeover Regulation Panel granted an extension for the posting of the circular relating to the transaction until today.

Telkom's bid, the second time it has made such a move, was initiated in May. Eight years ago, it offered to buy BCX in a deal that was quashed by the Competition Tribunal.

This time, however, both companies are more optimistic the bid will be allowed to go ahead, because the ICT landscape has changed. Telcos buying IT companies has become a global trend.

CEO Sipho Maseko has said the deal will give Telkom scale to expand into IT services and help reinforce its core connectivity business. "Telkom believes this combination will create a leading ICT company in SA, with unrivalled capabilities throughout the country."

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