Dimension Data releases listing details

By Iain Scott for Dimension Data South Africa

Johannesburg, 29 Jun 2000

Dimension Data Holdings has released the details of its proposal to list its shares on the London and Johannesburg Stock Exchanges.

The network and interactive integration services group, which aims to raise up to $1.25 billion through the global offer, says it plans to use up to $500 million to buy the minority interests in GK Communications and Com Tech, as well as the outstanding interests in Chernikeef.

The balance of the proceeds will finance organic and acquisitive growth to further its network and i-commerce service offerings.

The exact amount to be raised and the price at which the new ordinary shares are issued are to be established by market forces through an international bookbuilding exercise.

This will result in the offer price of the new ordinary shares being determined by investor demand and with reference to the share price of Dimension Data shares on the JSE on the date the bookbuilding exercise ends - expected to be 18 July.

The announcement of the offer price and basis of allocation under the global offer is expected to take place on 19 July, when conditional dealings in the shares on the LSE are expected to begin.

The group is also to be restructured to facilitate the London listing. The restructuring will involve the transfer of the assets and liabilities of Dimension Data to a new UK company, Dimension Data Holdings plc for the issue of Dimension Data Holdings plc shares.

Other steps will be taken to restructure the group under "appropriate intermediate holding companies".

"It is proposed that Dimension Data will unbundle the Dimension Data Holding plc ordinary shares as a distribution in specie to Dimension Data shareholders in terms of the South African unbundling legislation," the group says.

The proposals include the delisting of the Dimension Data shares from the JSE, the primary listing of the Dimension Data Holdings plc shares on the LSE and the listing of Dimension Data Holdings plc ordinary shares on the JSE. The Dimension Data shares will be cancelled.

Jeremy Ord will be first executive chairman of Dimension Data Holdings plc, with executive directors being Richard Came, Peter Harrison, Peter Hird, Stephen Joubert, Patrick Quarmby, Ettienne Reinecke, Malcolm Rutherford, Donovan Smyth, Robert Taylor and Bruce Watson.

The directors do not expect to declare a dividend for the current financial period or in the foreseeable future, in line with their expectation that all available cash generated will be invested in growing the group.