Johannesburg - Dimension Data (DiData) [JSE:DDT]
‚ which is part of the Japanese NTT group‚ on Wednesday released details of the R1.26bn outcome of the black economic empowerment transaction it signed with the BEE consortium in September 2004.
The consortium is led by Andile Ngcaba
Ngcaba, who is chairperson of Dimension Data Middle East & Africa (DDMEA), said he will‚ through Convergence Partners‚ remain a shareholder‚ together with 35 broad-based groups that provide support and care to over 45 000 vulnerable individuals in the nine provinces of SA.
He will also remain chairperson of DDMEA.
In 2004‚ the BEE Consortium held a 25.01% equity stake in Dimension Data SA - now DDMEA - valued at R380m.
The transaction was substantially vendor-financed on a notional basis. At the time‚ the consortium comprised:
• Ngcaba Holdings (now a subsidiary of Convergence Partners)
• Safika Holdings
• A group of broad-based BEE participants comprising previously disadvantaged individual (PDI) employees of Dimension Data and other key PDIs
• Nine broad-based groups
In December 2010‚ when Safika exited the consortium‚ Convergence Partners acquired 50.01% of Safika’s 5% shareholding‚ with Dimension Data acquiring the balance.
The total value of the transaction that will be paid to the various BEE individuals and organisations is R1.26bn.
Ngcaba - through Convergence Partners - is reinvesting his full stake back into the DDMEA business‚ while PDI employees who worked for Dimension Data during the empowerment period will be paid in full on September 7.
The broad-based groups - up to 35 from the initial 9 in 2004, will receive an initial cash distribution.
The broad-based groupings have elected to remain invested and therefore be part of the Dimension Data ownership structure in the future. Going forward‚ Dimension Data retains its current empowerment status.
“Within Dimension Data‚ transformation has opened up massive business opportunities during the period‚ with revenues in the public sector market‚ and across the rest of Africa growing over 750% and 110% respectively‚” said Dimension Data CEO Brett Dawson
“Without question‚ the business would not have been able to achieve such outstanding growth rates without driving an aggressive transformation strategy at the same time.
"Employees have not only benefited financially from the Employee Empowerment Trust‚ which touched 2 177 employees‚ but also through extensive training and career development opportunities."
Derek Wilcocks‚ CEO: DDMEA, said: “Growth of the MEA business over this period also doubled our employee base from just under 3 000 employees in three countries to around 5 800 employees in 20 countries across the African continent.
"In addition‚ our business growth has allowed employees to advance their management and technology skills through education opportunities and on-the-job training.
"Today‚ many of our employees have successful careers with us‚ and hold globally-recognised technical qualifications.
a'Personal development opportunities were also created by providing employees the potential to live and work not only across the African continent‚ but also internationally.”
Advancing education has been another key focus area for Dimension Data, said Wilcocks.
Some 27 500 learners have benefited from its e-learning programmes across 53 schools in seven provinces.
Annually‚ Dimension Data’s Saturday School programme provides intensive support for 100 learners in reaching matric and preparing for higher education. Successes include a 100% matric pass rate‚ and 95% university entrance.
"In 2011‚ 50 of our learners notched up a total 68 distinctions.
The company’s University Bursary Programme funded 16 Saturday school learners to attend a university of their choice‚ complete an undergraduate degree‚ and have the potential to join Dimension Data after graduation.
"Dimension Data also provided one-year learnerships/internships for some 150 previously disadvantaged learners in a programme run annually in partnership with the Sector Education and Training Authority (SETA) and key vendors.
"More than 70% of these learners secured permanent employment with Dimension Data post their learnerships/internship year,” said Wilcocks.
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