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Johannesburg - Telkom granted R1bn in financial assistance to its information and communications technology subsidiary Business Connexion (BCX) for working capital and debt commitments, it announced on Monday.
“The board of directors of the company have adopted a resolution granting financial assistance to Business to provide for working capital requirements, settle certain debt commitments, as well as to provide funding for future expansion,” Telkom said in a statement.
“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,” they went further to say.
READ: Telkom, BCX deal gets green light
The financial assistance was approved at the annual general meeting of the company held on 24 August 2016.
The Telkom board confirmed that after providing the financial assistance, BCX would be able to pay its debts as they became due in the ordinary course of business for a period of 12 months after following the granting of the financial assistance.
In 2014, BCX shareholder voted overwhelmingly in favour of Telkom’s acquisition of the company and in 2015 the Competition Tribunal of South Africa green-lit the R2.6bn merger deal.
Telkom also announced in the statement on Monday that it would invest R155m in Acajou Investments Proprietary Limited, a 100% subsidiary for a new business venture in the digital gaming arena that would be renamed Digital Gaming League.
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