Telkom has given its ICT subsidiary, Business Connexion (BCX), which it acquired in 2015 in an all-cash deal worth R2.7 billion, a monetary boost of R1 billion, so that the IT services company can meet its debt and working capital requirements.
Telkom said in a statement:
"The board of directors of the company have adopted a resolution granting financial assistance to Business Connexion to provide for working capital requirements, settle certain debt commitments, as well as to provide funding for future expansion. This is aligned with our announced strategy of integrating our enterprise business with BCX as our go to market entity providing a truly converged business offering end to end solutions to our enterprise customers."
A special resolution passed at the shareholders AGM allows Telkom to provide direct or indirect financial assistance to related companies. The board has called the terms and conditions of the financial assistance "fair and reasonable" to Telkom.
Pictured: Lawrence Weitzman, previously CFO at Business Connexion, now the company/s Managing Executive Technology Transformational Solutions
