Business Connexion Group Limited ("BCX" or "the Company") has received an offer from Telkom SA SOC Limited ("Telkom") to acquire the entire share capital of BCX ("the Offer"). Telkom intends to implement the Offer by way of schemes of arrangement. The purchase consideration is R6.60 per ordinary share and R6.60 per "A" share, which represents a premium of 20% over the share price of BCX at close of trading on 14 April 2014 when the cautionary announcement was issued. This values BCX at R2.67 billion.

BCX has an existing convergence strategy, and therefore believes there is sound rationale for the offer to be considered, as major global technological changes are driving the convergence of the Information Technology and the telecommunications industries. This merger would therefore advance BCX's convergence strategy and present new and exciting opportunities for staff in the greater combined entity. It is understood that the BCX brand and management team will remain in place in the event of a successful transaction.

"There are clear opportunities that exist between our respective companies. The dynamics of the global ICT industry are changing particularly with the evolution and convergence of technologies that have blurred the lines that once separated telecoms players from the world of information technology," said Benjamin Mophatlane, Business Connexion chief executive officer.

BCX and Telkom have complementary capabilities which provide for a natural fit within the client value chain. BCX's client value proposition would be further enhanced through integrated end-to-end solutions leveraging the combined capabilities of both entities.

BCX also believes that a merger with Telkom would enhance the company's global attractiveness, particularly on the African continent, by leveraging Telkom's extended communications network and strategic international relationships to enable additional capabilities with which to service BCX's multi-national client base.

"It is business as usual for us until all the conditions of the proposed transaction have been fulfilled. Unrelated to the offer, we are currently busy with a re-organisation process which supports the delivery of sustainable growth in the business and enhanced quality of service offerings to our customers. This important process is expected to be completed by the end of our financial year end," Mophatlane added.

An Independent Board of BCX directors reviewed the terms of the Proposed Transaction and recommended that the offer be presented to shareholders. This recommendation and the notice of the Scheme meeting will be detailed in a circular to be posted to BCX shareholders during June 2014. The proposed transaction is subject to a number of material conditions, including the approval by the Competition Authorities and other regulatory approvals.

Editorial contacts:

Vanessa Olver
Deputy Chief Executive Officer: Business Connexion Group
T +27 (0) 11 266 6007

Palesa Madumo
Group Communications Manager: Business Connexion Group
+27 (0) 11 290 9128

Frederic Cornet
Partner: Instinctif Partners
+27 (0) 11 447 3030