Business Connexion: Shareholders approve buyout by Telkom

SHAREHOLDERS in Business Connexion (BCX) had voted overwhelmingly in favour of being acquired by Telkom, the information technology outsourcing company announced yesterday. “The purchase consideration is R6.60 per ordinary share and R6.60 per ‘A’ share, which represents a premium of 20 percent over the share price of BCX at close of trading on April 14,” it said. This was the day before the cautionary announcement relating to the deal was issued, with the proposal placing BCX’s value at R2.67 billion. In addition, BCX announced on Friday that it would pay a special dividend to shareholders of 20c an ordinary share prior to the implementation of the proposed acquisition. The dividend distribution was over and above the R6.60 a share purchase consideration offered by Telkom. BCX chief executive Isaac Mophatlane said working with Telkom would improve the value the company offered to customers through integrated, end-to-end, information and communications technology solutions and a more global and competitive offering especially in Africa. “There are also some synergies between our respective businesses,” he said. Based on the current timeline, the acquisition is expected to be finalised in November. BCX shares rose 1.25 percent to close at R6.48. – Sapa