South Africa’s Telkom disclosed on Friday that its IT business unit BCX was looking to sell several assets, including NGA Africa after it posted slightly lower revenue figures for the six months to end-September.
“BCX has initiated a portfolio review process that will enable our strategy by identifying the core and non-core assets,” Telkom revealed in a statement to investors.
This process has resulted in the classification of several investments as held for sale as at 30 September 2017.
Telkom noted that the assets identified by BCX for potential divestiture at this time include NGA Africa, Appzone, BCX Kenya and BCX Botswana.
At 30 September 2017, BCX management was committed to a plan to sell these assets and had initiated a marketing plan for the assets at a price relative to their fair value.
Furthermore, on 1 September 2017, BCX sold Netcampus Proprietary Limited business to Teboho Makgatho Holdings. Netcampus Proprietary Limited is involved in information technology (IT) training and related activities and operates principally in South Africa.
“BCX will continue the review process throughout the remainder of the financial year,” Telkom informed investors.
BCX provides converged infrastructure solutions, information and communication services including cloud, infrastructure, and workspace services; global service integration management; and hardware and network equipment sales in South Africa and African countries.
Telkom said BCX plans to complete the sale within 12 months.
“Our business portfolio review process will positively change the quality of our earnings and revenue mix. BCX will continue focussing on leading application and infrastructure service capabilities and investing in future growth areas, which include driving solutions and business outcomes for our customers. BCX remains a growth platform through which cloud computing and data analytics, amongst others, will be delivered,” said the company.
In the six months to end-September, BCX reported a drop in operating revenue to R10.8 billion versus R11.3 billion in the same period last year.
Earlier this year, Business Connexion was rebranded as “BCX” months after Telkom bought it. The acquisition was finalised in 2015.
Founded in 1996, BCX emerged as one of the most innovative and profitable tech firms in South Africa with a massive footprint across the African continent, which is why Telkom came calling in an R2.7 billion deal.
The company delisted on the JSE on 24 August 2015.
BCX is built on the foundation of Telkom Business’s deep knowledge of infrastructure and Business Connexion’s expertise in providing customised ICT solutions for its customers. BCX is now the first brand in Africa that can offer end-to-end ICT solutions from a single provider.