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South Africa’s Telkom Acquires Botswana ICT Company

South Africa’s Telkom Acquires Botswana ICT Company

Written by John Churu, Gaborone | From Biz Tech Africa

South African telecommunications giant Telkom is making inroads into the Botswana market through the acquisition of an ICT company, Business Connexion (BCX). BCX also operates in Tanzania and Namibia.

Telkom is headquartered in South Africa and is listed on the JSE, while Business Connexion has operations in Botswana through its wholly owned subsidiaries, Ultimate Software Botswana (Pty) Ltd trading as Ultimate Solutions and CEB Maintenance Botswana (Pty) Ltd. The local subsidiaries are collectively called BCX Botswana.

BCX Botswana provides general computer hardware services sale, software solutions, information and communication technology hardware, and consumables such as cartridges and toners.

Sources say Business Connexion shareholders overwhelmingly voted, during their Annual General Meeting (AGM), in favour of Telkom’s P5.5 (R6.60) per share offer to take over the company. “The shareholders voted on eight resolutions, of which six received a 99.8% vote in favour of the Telkom transaction and the remaining two 90.7% support.”

It is believed that Telkom, which is majority owned by the SA government, made its offer for Business Connexion in May at a 20% premium to the company’s share price.

The BC CEO Isaac Mophatlane said the Telkom takeover would improve on customer service. “There are also some synergies between our respective businesses, which will be explored in more detail as we get closer to the completion of the transaction,” he said.

Read more at Biz Tech Africa