Telkom has revealed that it remains entirely committed to its transaction with BCG (Business Connexion Group Limited), pending final approval by The South African Competition Tribunal. This according to a media statement released by both parties. Telkom and BCG, otherwise known as Business Connexion (BCX), remain in ongoing discussions with the Independent Communications Authority of South Africa, as the regulator of the ICT industry.
Telkom and BCG applied to ICASA in August 2014, for written approval for a change in control of the shareholding of BCG from current shareholders of BCG, to Telkom.
The proposed transaction between BCG’s current shareholders and Telkom will result in Telkom acquiring the entire issued share capital of BCG in terms of an Implementation Agreement entered into between the parties on the 21st of May 2014.
Subsequent to this application, both BCG and Telkom have further reviewed the Electronic Communication Act, with particular focus on sections 13(1) and 31(2A). On reviewing these elements, the view has been taken that the application for the transfers of licenses from BCX to Telkom will not be required. The application for the license transfer was therefore withdrawn from ICASA. However, the transaction between Telkom and BCG remains on course for completion, pending final approval by the competition authorities.