Business Connexion`s (BCX`s) board is recommending its shareholders vote in favour of Telkom`s proposed acquisition of the group through a scheme of arrangement.
This comes after independent advisor Deloitte & Touche Corporate Finance informed the board of its opinion that the Telkom offer is fair and reasonable to BCX shareholders.
Yesterday a potential second bidder, as yet unidentified, withdrew an expression of interest in making an offer for BCX, leaving the way clear for Telkom.
At the same time, BCX has announced that the High Court of SA (Witwatersrand Local Division) has granted an order giving BCX permission to convene a scheme meeting.
This has been scheduled for 12 June.
Ordinarily if a bid is accepted by shareholders owning more than 90% of a company, the bidder can force remaining shareholders to accept the offer on the same terms.
However, a scheme of arrangement allows a buyer to acquire a company with the approval of just 75% of shareholders.
According to a joint notice issued yesterday afternoon, should the scheme meeting approve of the deal, and the scheme be sanctioned by the court, trade in the BCX share will be suspended on 21 August.
The listing is to be terminated on 29 August.
The groups say these dates are dependent on the fulfilment of various conditions precedent, including Competition Commission approval.
BCX`s share rose 14c or 1.7% to close at 840c on the JSE yesterday. It was trading 10c or 1.2% higher at 850c this morning.
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