Telkom offers R9/per share for Business Connexion
Telkom will furthermore agree to BCX paying a dividend of 25 cents per BCX share from existing cash resources. Telkom said it will not increase the price at which it has made the approach.
At the opening of the JSE on Wednesday, Business Connexion’s share price soared 86 cents, or 10.7%, to 890 cents.
"The acquisition of BCX will advance Telkom’s ongoing data strategy. In particular, Telkom believes that the acquisition will enhance Telkom’s ability to offer its customers end-to-end solutions across the ICT value chain," it said.
Telkom’s strength has to date been on ICT services relevant to its core connectivity proposition, managed network and internet access and BCX offers a complementary service offering. The acquisition of BCX will enable Telkom to have a meaningful presence in the IT services market extending its value chain with BCX’s proven capabilities in business application and support management, business process outsourcing and other IT related complementary lines of business, it added.
Telkom has approached five key shareholders of BCX holding in excess of 50% of the entire share capital of BCX. Telkom has received a combination of written and in-principle support from these shareholders to proceed with the potential offer, it added.
Telkom hopes to work with the management of BCX to consummate a transaction to the benefit of both BCX and Telkom shareholders, it concluded.
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