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South Africa : BUSINESS CONNEXION announces its acquisition of TELKOM

August 13, 2014

IT outsourcing, Business Connexion (BCX) announced that its shareholders voted in favour of being acquired by Telkom.

The purchase considered for a R6.60 per ordinary share and R6.60 per 'A' share, which represents 20% over the share price of BCX.

This is the day before the cautionary announcement was issued, with the proposal placing BCX's value at R2.67 billion.

The cautionary announcement was advertised by a listed company to urge shareholders to exercise caution when trading in its shares.

It announced that BCX would pay a special dividend to shareholders of up to 20 cents per ordinary share prior to the implementation of the proposed acquisition.

The dividend distribution was over and above the R6.60 purchase consideration per share offered by Telkom.

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.

The rationale behind the move was in line with BCX's existing convergence strategy, as major technological changes drove the convergence of the IT and the telecommunications industries.

This is a key milestone in the proposed transaction process and will work with Telkom on a number of conditions which remain to be fulfilled.

For more stories on investments and markets, please see HispanicBusiness' Finance Channel

Source: TendersInfo (India)

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