Dimension Data (DiData) is a step closer to being bought out by Japanese company Nippon Telegraph and Telephone Corporation (NTT), after the European Commission sanctioned the R24.2 billion deal.
In the middle of last month, DiData told the market that NTT had offered £2.1 billion to buy it out. The deal, expected to be wrapped up in October, will result in DiData being de-listed from both the Johannesburg and London stock exchanges.
Yesterday, DiData and NTT said the deal had received the necessary antitrust clearance from the European Commission to go ahead with the offer.
The companies added they had received notification from the Foreign Investment Review Board that there were no objections to the offer under Australia's foreign investment policy. It is not known what steps still need to be taken before the deal can be finalised.
Growth improvement
Meanwhile, DiData yesterday reported a strong trading performance for the three months to June, which it compared with the “relatively weak” performance of the same quarter a year ago.
The company said turnover in constant currency increased year-on-year by about 22% in the three months to June when compared to the third quarter of 2009.
For the half-year to March, DiData had said revenue in constant currency had declined 3.7%, but was higher in reported currency by 11.1%, due to exchange rate movements. Turnover in the half year was $2.2 billion, compared with $1.95 billion in the previous first half.
The company is confident it can meet its target of single digit constant currency revenue growth for the full-year. Constant currency is the currency used within the countries in which it operates.
During the third quarter, DiData reported a strong performance from the System Integration business and ongoing weak trading in Plessey. Trading in Internet Solutions and Express Data was “satisfactory”, it said.
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