Dimension Data`s application to move its primary listing to London has been approved.
The approval of the application, which was first lodged in February, stipulates that the South African branch register be kept on the JSE, and any deals involving shares in that register will be subject to South African tax legislation.
The delay in approval has caused a great deal of frustration at the R4.6 billion turnover group, which recently had to scupper plans to acquire a US company as that company did not want rands or emerging market shares.
The listing is expected to go ahead in September, and chairman and CEO Jeremy Ord says the group intends to raise a significant amount of cash to fund acquisitions, particularly in Scandinavia.
He says the delay was caused by the finance ministry needing clarification on a certain point.
An analyst says the approval is good news for the group, which can now get on with achieving its plans. "The delay was putting it in a kind of limbo, and I`m sure it has had to hold off on a couple of plans," he says. "Now the way is clear."
Although several directors will be moved abroad, the group has developed South African management to take over.
However, management in London will not be exclusively from SA, but from the group`s operations worldwide.
Ord says the listing will not only enhance the group`s access to capital and acquisition currency, but raise its profile among its multinational customer base as well as the international investor community.
Ord does not rule out a future Nasdaq secondary listing.
Dimension Data operates in 36 countries in Africa, Asia, Europe, Australia and North America. It also has an operation in S~ao Paulo, Brazil.
The announcement strengthened the rand in early trade, although the currency was unsettled by comments by the Reserve Bank that it will not defend the rand. DiData`s share was trading at R52.90 early this afternoon, 90c up on yesterday`s close.
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