An end in sight
THE END IS finally in sight for Business Connexion shareholders in the protracted possible acquisition by Telkom, with Competition Tribunal hearings set down for a month starting from 13 March.
Business Connexion (BCX) CEO Peter Watt, who was sounding more upbeat than for some time, said – without wanting to pre-empt the board’s decision – that it did seem likely that it would agree to extend the deadline for the transaction beyond 15 March, the date currently in place.
Once the hearings are over, the Tribunal has undertaken to make its decision quickly; within 20 working days, Watt said. This should be around mid-May.
Watt said he did not believe that the Competition Commission had applied its mind to the relevant issues, in the reasoning behind its decision to recommend the Tribunal oppose the transaction, adopting a “textbook approach”. BCX felt it owed it to shareholders to give them the best possible chance of doing the deal, and thus looked forward to the case being put before the Tribunal during hearings.
The recent muted interim results performance paints a picture of an “inwardly” focused company, largely, BCX said, because of completing its SAP implementation and moving all existing clients across to its data centres. With that out of the way, and more than double the normal number of tender applications out there, BCX believes the next six months will be a period of expansion.