The final day for trading in Business Connexion (BCX) shares on the JSE will be this Friday. This is according to a joint SENS announcement by BCX and Telkom, which indicates 14 August will be the "last day to trade in scheme BCX shares in order to be recorded in the register on the scheme record date" which is 21 August.
Last week, the Competition Tribunal approved Telkom's bid to buy BCX for R2.67 billion and acquire BCX's entire issued share capital.
According to a joint finalisation announcement on the deal, Monday, 17 August will see "a suspension of listing of BCX shares on the JSE" with plans for the company to officially delist at market opening on 25 August.
The deal has been over two years in the making and Telkom CEO Sipho Maseko expects the company to operate as an integrated entity with BCX by the beginning of September.
The companies were awaiting final approval from the Takeover Regulations Panel, which has now issued a compliance certificate allowing the finalisation of the deal.
The JSE told ITWeb the stock exchange has also given its go-ahead for BCX to delist.
"The JSE has given approval for the delisting of BCX shares. It was a scheme of arrangement, regulated by the Takeover Regulations Panel. The delisting is a consequence of the scheme becoming unconditional. A transaction between Telkom and BCX does not require JSE approval. It is a matter for shareholders to decide subject to certain conditions being fulfilled," says the JSE.
BCX shareholders will be paid R6.60 for every BCX ordinary share they hold. This will be for all shareholders who hold BCX shares as of the scheme record date of 21 August.
Xenium Financial Managers CEO Izan de Bruin says there will be limited trade, if any, over the next few days.
"I doubt there would be any trading up until Friday, but if there is it could be someone who wants to transact instead of buying more Telkom shares, or someone who is impatient to get paid out once the share delists. Most shareholders will just wait to get paid out."
Ovum senior analyst Richard Hurst agrees that with the pay-out price being predetermined, there is little need for shareholders to do any last minute trading.
"Prior to this there might have been a gap, but right now it's a foregone conclusion as to what the pay-out will be so it's better for shareholders to just wait for the pay-out from Telkom."
Hurst says the deal means there is now a smaller pool of tech shares for investors to invest in. "It seems like there is a shrinking pool of ICT opportunities on the board, with nothing coming up to replace those that are delisting."
Africa Analysis MD Dobek Pater believes the deal is in the best interest of both companies.
"Telkom possibly stands to gain more than BCX, but both parties should benefit as the market is heading in the direction of combined/converged telecoms and IT services. The combined entity will be able to serve more clients more effectively and efficiently, based on Telkom's extensive network reach and BCX's IT services portfolio," says Pater.
"If Telkom uses this business properly in future it will give them better value. The trick will be to properly integrate BCX into the Telkom business to maximise value," says De Bruin.