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Altech ups stake in Kenya's KDN

Sep 22 2009 10:47

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Johannesburg - South Africa's technology group Allied Technologies (Altech) said on Tuesday it would increase its economic stake in its East Africa unit, Kenya Data Networks (KDN), to 60.8% from 51%.

Altech, one of Africa's biggest connectivity providers, added that it would invest a further $39.5m to build KDN's fibre optic network.

Altech, which expects R500m cash flow by year-end, said it would invest a further $7.5m in KDN to build a data centre in Nairobi, Kenya, with its co-shareholder in KDN, the Sameer Group.

The group said the data centre would offer disaster recovery, virtual application hosting, data and application backup, and an ethical hacking centre and data archiving facility to clients in the areas that will be connected by the planned undersea cables.

"KDN is central to our strategy and our gateway to East Africa. Our further investment in this business, is evidence of our confidence that the continent and in particular East Africa is poised for massive growth," Altech's CEO Craig Venter said.

Altech's east Africa operations made about R114m and about 20% of group earnings in the year to end February 2008.

- Reuters

 
 
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