EMBATTLED listed telecoms operator Telkom has announced an ambitious bid of R2.6-billion to take over listed information and communication technology (ICT) company Business Connexion‚ which generates revenue of more than R6-billion a year.
In a statement to shareholders yesterday‚ Telkom said it intended to implement the offer by way of schemes of arrangement. The purchase consideration is R6.60 per ordinary share and R6.60 per “A” share‚ which represents a premium of 20% over the share price of Business Connexion at close of trading on April 14‚ when a cautionary announcement was issued.
This values Business Connexion at R2.67-billion.
The fixed-line operator said the deal would‚ among other things‚ help reinforce Telkom’s core connectivity business and enhance its convergence strategy.
Business Connexion has an existing convergence strategy‚ and Telkom said it believed there was sound rationale for the offer to be considered as major global technological changes were driving the convergence of the ICT industry.
Business Connexion CEO Benjamin Mophatlane said the merger would advance the company’s convergence strategy and present new and exciting opportunities for staff in the greater combined entity.
“There are clear opportunities that exist between our respective companies. The dynamics of the global ICT industry are changing particularly with the evolution and convergence of technologies that have blurred the lines that once separated telecoms players from the world of information technology‚” he said.
Both Business Connexion and Telkom believe a merger would enhance their global attractiveness‚ particularly on the African continent. — BDlive
Telkom puts R2.6bn on table for ICT company
In a statement to shareholders yesterday‚ Telkom said it intended to implement the offer by way of schemes of arrangement. The purchase consideration is R6.60 per ordinary share and R6.60 per “A” share‚ which represents a premium of 20% over the share price of Business Connexion at close of trading on April 14‚ when a cautionary announcement was issued.
This values Business Connexion at R2.67-billion.
The fixed-line operator said the deal would‚ among other things‚ help reinforce Telkom’s core connectivity business and enhance its convergence strategy.
Business Connexion has an existing convergence strategy‚ and Telkom said it believed there was sound rationale for the offer to be considered as major global technological changes were driving the convergence of the ICT industry.
Business Connexion CEO Benjamin Mophatlane said the merger would advance the company’s convergence strategy and present new and exciting opportunities for staff in the greater combined entity.
“There are clear opportunities that exist between our respective companies. The dynamics of the global ICT industry are changing particularly with the evolution and convergence of technologies that have blurred the lines that once separated telecoms players from the world of information technology‚” he said.
Both Business Connexion and Telkom believe a merger would enhance their global attractiveness‚ particularly on the African continent. — BDlive
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