Is Vox buying Storm?

Johannesburg, 02 Oct 2007

Sources close to Vox Telecom and Storm Telecom say a merger between the two companies could be announced "within days".

JSE-listed Vox Telecom issued a cautionary to shareholders in mid-August, saying it was in discussions that could impact the price of its securities.

Since then, the company has remained tight-lipped regarding the details of the discussions.

However, two sources, who asked to remain anonymous, have revealed the companies are now close to tying up the deal.

One source alleges that a heads of agreement has been signed and that Storm will be sold for R350 million.

Vox Telecom executive chairman Tony van Marken this morning declined to comment, saying the company "does not comment on market speculation".

Recently appointed Storm Telecom CEO Willem van Rensburg said there is no signed agreement between the companies.

"My experience in listed companies says that if such a case were true, Vox Telecom would have to go to the market as soon as such an agreement was signed anyway. Further than that, I have no comment," he said.

Vox Telecom - which recently completed the change of its name from DataPro - has been on a buying spree over the last two years.

In the last 12 months, it has acquired Definity Telecoms in Namibia, Orion Telecoms, Xsinet, Dial Telecoms and VOIP Telecoms.

Earlier this year, Van Rensburg told ITWeb that Storm had developed an appetite for acquisitions, but still sees a lot of organic growth potential.