Telkom and BCX in licence application rethink

Johannesburg - Fixed line telecoms operator Telkom says it no longer needs the approval of the Independent Communications Authority of South Africa (Icasa) regarding the licence transfer of Business Connexion Group (BCG).

Last year, Telkom announced that it plans to buy African cloud computing business Business Connexion - which is also known as 'BCX' - for R2.7bn, pending final approval from regulators such as the South African Competition Tribunal.

In addition, Telkom also applied to Icasa in August 2014 for written approval for a change in control of the shareholding of BCG from current shareholders of Business Connexion to Telkom.

Regulators have not yet made a decision on whether or not the deal is approved.

But Telkom and BCG have reviewed the Electronic Communication Act and concluded that the Icasa application for the transfers of licences from BCX to Telkom is no longer required

“On reviewing these elements, the view has been taken that the application for the transfers of licences from BCX to Telkom will not be required. The application for the licence transfer was therefore withdrawn from Icasa,” Telkom said in a statement.

“However, the transaction between Telkom and BCG remains on course for completion, pending final approval from the competition authorities,” Telkom said.

The two companies in a statement further noted that “both Telkom and BCG (Business Connexion Group Limited) remain entirely committed to the transaction with BCG and the transaction will proceed, pending final approval by The South African Competition Tribunal”.

Acquisitions

The Telkom-BCG deal is just one possible high profile deal in the SA’s telecoms space.

Vodacom is also in a R7bn bid to acquire Neotel.

The Vodacom-Neotel deal is also subject to regulatory approval as earlier this month rival telecom operators such as Cell C and MTN had an opportunity to explain their opposition to the deal at Icasa hearings in Johannesburg.

Vodacom wants to acquire Neotel’s customers, fibre lines and spectrum as part of the deal. Vodacom also already has around 30 million subscribers in SA.