Telkom's proposed purchase of Business Connexion (BCX) took another step forward today when the Common Market for Eastern and Southern Africa (Comesa) said the R2.67 billion buyout could proceed.
Telkom and BCX said in a joint statement the last remaining conditions required before the deal can go ahead include approval from the South African competition authorities, approval as may be needed from the Independent Communication Authority of South Africa (ICASA), and the issue of a compliance certificate by the Takeover Regulation Panel.
Last month, Telkom and BCX withdrew an application that was made with respect to a transfer of control of licences, from BCX to Telkom.
Both parties have indicated their full commitment to the deal, pending approval by the competition authorities; however, it seems they were trying to limit the part ICASA has to play in the deal.
Telkom communications head Jacqui O'Sullivan explained the withdrawal was based on a review of the relevant regulations. "The transaction is absolutely still happening, pending approval by the competition authorities. We are of the opinion that the transfer is not required at this time."
ICASA also issued a statement informing interested parties that Telkom and BCX had withdrawn their application for regulatory approval of the transaction in question, and had indicated they will "seek an audience with the authority in due course to explain the rationale for the withdrawal".
The outcome of the meeting has yet to be announced.
Telkom says it will continue to update shareholders.
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