Business Connexion (BCX) says it is still awaiting regulatory approval for Telkom's R2.67 billion takeover bid from a number of countries.
In a statement to shareholders, the listed company says it still needs approvals from the Competition Commission of South African, the Competition Authority in Botswana, the Common Market for Eastern and Southern Africa Commission, and the Independent Communications Authority of South Africa.
Telkom's cash offer of R6.60 a share ? its second move on BCX after the Competition Commission quashed a R2.4 billion bid eight years ago - was unanimously accepted by BCX stock-holders in August - even though it was below the R7.02 value proposed by BDO Corporate Finance as fair.
Should the deal go through, BCX will remain as a standalone and separately branded entity within Telkom, although the telco's IT arm - Cybernest - will be reverse spun into it. BCX will be ring-fenced for five years.
Adding BCX to Telkom will enable the telco to realise its vision of digital homes and offices, while BCX will benefit through the addition of connectivity to its portfolio, as well as access to more data centres. Telkom will also bolster BCX's African ambitions.
BCX notes, once it gets all the necessary approvals, it will seek the final go-ahead from the Takeover Regulations Panel and the JSE.
Unconditional approvals have already been obtained from the Namibian Competition Commission and the Tanzania Fair Competition Commission, it says.
"The transaction is still on track as we await the appropriate regulatory approvals noted above."
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