Telkom was earlier this week – Tuesday to be axact – given the green light by the Competition Tribunal on its transaction to purchase Business Connecion (BCX). Telkom is acquiring the entire issued share capital of BCX, which will then delist from the JSE.
According to a joint presser released by Telkom, the acquisition forms part of its turnaround strategy to improve performance and to reposition the company for sustainable growth and has, as a key component, focused on the growth and enhancement of Telkom’s ICT service offering to its customers.
“As a result of this transaction, Telkom will be able to grow beyond its core business of connectivity by expanding into ICT services, while reinforcing our connectivity offering and enhancing Telkom’s convergence strategy.” said Sipho Maseko, Telkom Group Chief Executive Officer.
Maseko continued to add that the proposed transaction will leverage Telkom’s expertise to further address the technology and telecommunications requirements of clients in South Africa and elsewhere in Africa. Before you forget, BCX is one of the largest ICT services providers listed on the JSE when measured in terms of turnover, total assets and staff compliment. The company employs more than 6,700 people on the African continent with offices in various African countries, the United Kingdom and Dubai and generates revenue in excess of R6 billion per annum. Final approval of the purchase will now be sought from the Takeover Regulations Panel and the JSE.