A PYMNTS Company

South Africa: Competition Commission green lights Telkom deal

By  |  May 14, 2015

The R2.67 billion merger deal between Telkom and ICT firm Business Connexion has received approval from the Competition Commission.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    The deal is still awaiting approval from the Independent Communications Authority of South Africa.

    Telkom announced a year ago that it had entered into an agreement to acquire the listed ICT group in a R2.7 billion cash offer funded from its own cash resources.

    The purchase includes the entire issued ordinary share capital of BCX, but excludes the BCX ordinary shares held by Business Connexion as treasury shares.

    Telkom would pay to the ordinary shareholders a cash consideration of R6.60 per ordinary scheme share, and will terminate BCX’s listing on the main board of the JSE once the deal gets final approval.

    “Upon receipt of the above approvals, final approval of the Proposed Transaction will be sought from the Takeover Regulation Panel,” Telkom said in a statement at the end of April.

    “The Commission has recommended to the Competition Tribunal that the large merger whereby Telkom SA SOC Limited intends to acquire Business Connexion Group Limited be approved, with conditions,” the commission said.

     

    Full content: MoneyWeb

    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.