The bid, which would see ordinary shareholders receive R 6.60 per share, is thought to be part of Telkom’s strategy to increase its presence in the information and communication technology market.
"A key consideration of our strategy is to grow beyond our core business of connectivity and expand into end-to-end ICT services," Sipho Maseko, CEO at Telkom, said in a statement. "This will form part of the strategy to improve performance and restore profitability."
Business Connexion has offices in both Africa and the UK, and offers IT infrastructure such as data centres as well as consultancy services.
If the deal goes through, Business Connexion will become a Telkom subsidiary and delist from the Johannesburg stock exchange.
Earlier this year Telkom SA signed a network-sharing deal with MTN South Africa.
