Related Articles
Top Stories
May 25 2012 13:58
The costs of the first phase of the Gauteng Freeway Improvement Project have increased significantly to almost R90bn, according to a report.
May 24 2012 17:31
The Reserve Bank will maintain current interest rates, and a considerable reduction in the local petrol price is anticipated, says governor Gill Marcus.
May 25 2012 11:36
The JSE has identified and stopped "incorrect" trades from one of its members, and will reverse the trades and lower the session's total value after the close.
Johannesburg - Dimension Data (DDT) on Tuesday announced its intention to acquire the remaining 44.9% of the Singapore-
listed shares of its Asian subsidiary Datacraft for total purchase price of $276m, or around R2.1bn.
The offer is being pitched at $1.33 per share, which represents a premium of 34% to Datacraft's closing share price of US99c on Monday this week.
Dimension Data said in a statement to the JSE that the acquisition would be effected by way of a scheme of arrangement under Singapore law and is being financed with a combination of cash and equity issuance.
The global IT solutions and services provider first acquired a
controlling stake in Datacraft in 1997, from which time Datacraft has operated as a separate brand.
Datacraft's regional performance has been strong with its Q2 2008 results delivering revenue growth of 25.5% year-over-year and a 24.9% increase in after-tax profit.
The acquisition must pass various regulatory and shareholder approvals prior to completion.
Dimension Data anticipates this process will take several months.
"We are excited about the opportunity to acquire the remaining shares of Datacraft, taking into consideration the growth prospects in Asia and the competitive landscape in our industry," Brett Dawson, CEO Dimension Data plc commented.
"Integrating Datacraft as a wholly-owned subsidiary will provide greater flexibility and place us in a better position to capture market opportunities," Dawson added.
Datacraft has a presence in 13 countries and the acquisition is seen as a logical step for Dimension Data.
Assuming the acquisition is completed, Dimension Data anticipates very few changes in Datacraft's operations, as strong alignment between the two companies already exists.
- I-Net Bridge