Telkom in R2.6bn takeover bid

EMBATTLED listed telecoms operatorTelkom has announced an ambitious bid of R2.6-billion to take over listed information and communication technology company Business Connexion‚ which generates revenue of more than R6-billion a year.

Telkom said yesterday it intended to implement the offer by way of schemes of arrangement.

The purchase consideration is R6.60 an ordinary share and R6.60 an "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 help reinforce Telkom's core connectivity business.

Business Connexion chief executive Benjamin Mophatlane said the merger would present new and exciting opportunities for staff in the greater combined entity. – BDlive