Johannesburg, 05 Aug 2015
Telkom and Business Connexion (BCX) today welcomed the Competition Tribunal's decision to approve the transaction between the two companies. Telkom is acquiring the entire issued share capital of BCX, which will then delist from the JSE.
Telkom's turnaround strategy to improve performance and to reposition the company for sustainable growth has, as a key component, focused on the growth and enhancement of Telkom's ICT service offering to its customers.
"We are very pleased that the Competition Tribunal has approved this acquisition, which will benefit both Telkom and BCX customers," said Sipho Maseko, Telkom Group Chief Executive Officer. "As a result of this transaction, Telkom will be able to grow beyond its core business of connectivity by expanding into ICT services, while reinforcing our connectivity offering and enhancing Telkom's convergence strategy."
Maseko said the proposed transaction will leverage Telkom's expertise to further address the technology and telecommunications requirements of clients in South Africa and elsewhere in Africa.
"BCX has very strong capabilities in managed IT infrastructure, including data centres, cloud-based services and application development," said Isaac Mophatlane, Business Connexion Group Chief Executive Officer. "The merger will enable Telkom to expand its existing offerings while, at the same time, providing scale in IT services, which will help reinforce Telkom's core connectivity business and enhance Telkom's convergence strategy."
Commenting on the way forward, Mophatlane said he believes the merger will improve the customer value propositions of both companies through a greater ability to provide integrated end-to-end ICT solutions and a more global and competitive offering, particularly on the African continent and beyond.
Maseko reiterated Telkom's commitment to Business Connexion as a long-term investor. Telkom has a strong commitment to social development and ongoing transformation goals, including broad-based BEE and the ICT Charter. Telkom regards ICT services as a key enabler for economic growth.
BCX is one of the largest ICT services providers listed on the JSE when measured in terms of turnover, total assets and staff complement. The company employs more than 6 700 people on the African continent with offices in various African countries, the United Kingdom and Dubai and generates revenue in excess of R6 billion per annum.
Final approval will now be sought from the Takeover Regulations Panel and the JSE.
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