Telkom buys local ICT firm
Staff Writer | Friday August 15, 2014 12:35
While headquartered in South Africa and listed on the JSE, Business Connexion operates in Botswana through its wholly owned subsidiaries, Ultimate Software Botswana (Pty) Ltd trading as Ultimate Solutions and CEB Maintenance Botswana (Pty) Ltd, collectively referred to as BCX Botswana.
BCX Botswana provides general computer hardware services sale, software solutions, information and communication technology hardware, and consumables such as cartridges and toners.
Business Connexion shareholders on Monday overwhelmingly voted in favour of Telkom’s P5.5 (R6.60) per share offer to take over the company.
According to the Business Day, the shareholders at Monday’s annual general meeting voted on eight resolutions, of which six received a 99.8% vote in favour of the Telkom transaction and the remaining two 90.7% support.
Telkom, which is majority owned by the SA government, made its offer for Business Connexion in May at a 20% premium to the company’s share price.
In addition to the R6.60 per share purchase price, Telkom’s R6.60 cash offer, Business Connexion shareholders will receive a 20c special dividend.
Business Connexion CEO Isaac Mophatlane said on Monday the Telkom takeover would improve what it could offer customers.
“There are also some synergies between our respective businesses, which will be explored in more detail as we get closer to the completion of the transaction,” he said.
Mophatlane said the transaction was in line with Business Connexion’s existing convergence strategy, as major global technological changes drive were driving the convergence of the information technology and the telecoms telecommunications industries.
Business Connexion said the proposal was now going to be scrutinised by various competition authorities in the various countries it operates in.
The company, which also operates in Tanzania and Namibia, has already filed an application for the proposal with the local Competition Authority.
In a merger notice released this week, the CA director for communication and advocacy, Gideon Nkala, announced that the Authority has received a merger notification between Business Connexion Group Limited and Telkom SA SOC Limited (Telkom).
“The proposed transaction involves Telkom acquiring the entire issued ordinary share capital of Business Connexion Group Limited,” said Nkala
Telkom services include offering business, residential and payphone customers a wide range of services and products including fixed-line retail voice services, fixed line data services, data centre operations, mobile communications services and wireless data services.
Telkom does not directly operate in Botswana but sub-contracts its services to various companies in Botswana.