Telkom has increased its offer for the Business Connexion Group (BCX) to acquire its entire issued share capital for R2.36 billion.
According to a SENS announcement, Telkom also agreed to pay BCX a dividend of R0.25 per BCX share "from existing cash resources".
The group claims it received written and in-principle support for its unsolicited offer from five BCX shareholders, who hold more than 50% of the company`s entire share capital.
"Telkom will not increase the price at which it has made the approach," the telecoms giant says, adding that the acquisition of BCX will advance its ongoing data strategy.
"In particular, Telkom believes the acquisition will enhance [its] ability to offer its customers end-to-end solutions across the ICT value chain."
Telkom`s strength, it says, has to date been on ICT services relevant to its core connectivity proposition, managed network and Internet access, and BCX offers a complementary service offering.
"The acquisition of BCX will enable Telkom to have a meaningful presence in the IT services market, extending its value chain with BCX`s proven capabilities in business application and support management, business process outsourcing and other IT-related complementary lines of business," the company adds.
Telkom says it hopes to work with BCX management to consummate a transaction to the benefit of both BCX and Telkom shareholders.
This offer, at R9 a share, is an increase on an alleged earlier approach made by Telkom to BCX. In January, BCX terminated talks with Telkom and Bytes Technology Group, which both expressed interest in the group, after reported offers at the level of R6 or R7 a share.
At that time, BCX strongly denied that potential bidders are likely to return with better offers.
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