BCX / Telkom - Update on Telkoms proposed acquisit
TKG BCX
TKG BCX
BCX / Telkom - Update on Telkom"s proposed acquisition of BCX
Business Connexion Group Limited
(Incorporated in the Republic of South Africa)
(Registration number 1988/005282/06)
Share code: BCX ISIN: ZAE000054631
("BCX")
Telkom SA Limited
(Incorporated in the Republic of South Africa)
(Registration number 1991/005476/06)
Share code: TKG ISIN: ZAE000044897
("Telkom")
Update on Telkom"s proposed acquisition of BCX
Telkom and BCX note that the Competition Commission has recommended to the
Competition Tribunal that Telkom"s proposed acquisition of BCX (the
"Acquisition") be prohibited. The Competition Tribunal may or may not agree with
the Competition Commission"s recommendation. Telkom continues to believe that it
has a strong case and will be putting forward its case to the Competition
Tribunal. A pre-hearing is scheduled at the Competition Tribunal for 24 November
2006.
Shareholders are reminded that the Acquisition is subject to the Competition
Authorities approving the Acquisition in terms of the Competition Act, 1998 (Act
89 of 1998) as amended, either unconditionally or subject to such conditions as
may be acceptable to Telkom.
In terms of the Scheme of Arrangement entered into between Telkom and the BCX
shareholders a date of 15 December 2006 was included for the conditions
precedent to be fulfilled including Competition Authorities approval. This
fulfilment date can be extended by the mutual consent of the Boards of BCX and
Telkom. If the fulfilment date is not extended by the mutual consent of both
parties then the Scheme of Arrangement will fail and Telkom will not conclude
its acquisition of BCX.
A further announcement will be made in due course.
Johannesburg
20 November 2006
Financial advisor and sponsor to Telkom: UBS
Financial advisor to BCX: Investec Corporate Finance
Transaction sponsor to BCX: Investec Bank Limited
Attorneys to Telkom: Werksmans Inc.
Attorneys to BCX: Cliffe Dekker Inc.
Sponsor to BCX: RMB
Date: 20/11/2006 08:45:19 AM Produced by the JSE SENS Department
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