The merger between two South African companies, Telkom and Business Connexion (BCX), which was to happen by 31st of January, has been postponed until 31st of March.
The reason behind this change is that the merger still needs to be approved by the Competition Commission of South Africa, the Common Marked for Eastern and Southern Africa (COMESA) Commission and the Independent Communication Authority of SA (ICASA).
Once these approvals have been received, the companies will be able to seek final approval from the Takeover Regulations Panel and the JSE.
So far, the deal has been approved by the Namibian Competition Commission, the Tanzania Fair Competition Commission and the Competition Authority of Botswana.
The companies have briefed shareholders that the Long Stop Date has been extended from 31 January 2015 to 31 March 2015 in order to complete the regulatory approval process.
Once approved, Telkom will buy out all of Business Connexion’s (BCX’s) shares, in a deal worth about R2.7-billion.
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BCX has offices in the UK and Dubai as well as in South Africa. It employs more than 6 700 people in Africa and generates revenue in excess of R6-billion per annum.
