DataPro's Orion bid oversubscribed

By Nicola Mawson for DataPro

Johannesburg, 14 Feb 2007

JSE-listed DataPro has finalised all the conditions in order to take over least-cost routing firm Orion.

The company held its annual general meeting on Monday, during which the majority of shareholders voted in favour of the resolutions required to acquire Orion, it said in a note to shareholders yesterday.

Last year, DataPro announced its intention to buy Orion in a R380 million deal as it moved to expand its offerings in a converging environment.

The company also said its vendor placement had been five times oversubscribed. "Accordingly, the final condition precedent relating to the acquisition of Orion has been met ahead of schedule."

As a result of the interest, it says the purchase price will now be settled in equity "to accommodate the various interested and strategic parties". It has also secured finance amounting to R170 million with a financial institution.

This funding will be used to replace existing facilities, provide working capital to the enlarged DataPro Group and facilitate certain smaller potential acquisitions.

DataPro's shares were up 7.41% to R1.45 by 10.30am today, with over one million shares traded. Its shares closed at R1.35 on Tuesday. Its 12-month high is R1.50, while its 12-month low is 47c.