After a bid takeover lasting 816 days, Telkom CEO Sipho Maseko expects the company to operate as an integrated entity with Business Connexion (BCX) as of 1 September.
Maseko made the comments at a Telkom/BCX media briefing yesterday, where he said finalising the transaction has taken roughly the same amount of time he has been Telkom CEO (835 days).
On Tuesday, the Competition Tribunal approved Telkom's bid to buy BCX for R2.67 billion. Telkom is acquiring the entire issued share capital of BCX.
The real work starts now and targets for the integration team have been clearly outlined, said Maseko. "Day one starts on the first of September give or take, [depending on] where we end up with the takeover regulation but ideally we want to start that integration process as quickly as possible."
As a listed entity, BCX still needs to get approval from the Takeover Regulation Panel. Following that approval, the company will be delisted and the shareholders will be paid out.
Maseko noted Telkom has had a difficult two years and the transaction with BCX is an important growth leg of how it is thinking about the future of the company.
"This deal will enable Telkom to consolidate and lead in enterprise and IT services."
Maseko noted the integration process of the companies will be in the reverse, where Telkom's business will be integrated into BCX. "That makes sense; it's strategic, correct and it enables us to tap into their capability."
According to the Telkom boss, BCX's footprint in Africa will also enable the telecoms company to have an appropriate position on how it does business on the continent.
"The last time we went into the continent as Telkom it didn't go that well. Our entry was clumsy, our exit was clumsy. So we think this one provides us with a much more coherent claim of accessing Africa's growth opportunities," he said.
Staff cuts
The Competition Tribunal's condition for BCX on approval of the merger requires the IT services company not retrench more than 60 (or 20 per year) members of its staff for three years.
BCX CEO Isaac Mophatlane said the company does not foresee the reduction of employees in the near future.
"Because of the skills shortage in SA, we do not see any future retrenchments."
According to Mophatlane, BCX's management team will remain in place to ensure continuity and BCX will run as an independent subsidiary within the Telkom Group.
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