London- and Johannesburg-listed Datatec has started the process of performing due diligence on Comztek, and expects its research to be complete by month end.
Earlier this month, Datatec announced it was in talks to buy Comztek for R97 million in cash and shares. So far, all of Comztek's management and shareholders, apart from Mustek, have indicated they would support the deal.
Mustek, a hardware distributor, owns close to 42% of Comztek, and Datatec has given the distributor until the end of the month to accept the offer.
Mustek has indicated that there are too many conditions attached to the deal at the moment. CEO and co-founder David Kan previously explained the company wanted more clarity on the offer, which would require Datatec performing due diligence.
Datatec CFO Ivan Dittrich says the company started due diligence at Comztek towards the end of last week. He says the company hopes to complete the process by the end of September.
Dittrich says if Mustek fails to agree to the deal by the end of the month, Datatec will have to revisit its options. However, he expects the due diligence to provide the clarity that Mustek is seeking.
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