The former VenFin, now trading as Business Ventures Investments 951, has effectively become the largest Dimension Data shareholder following the conversion of its $100 million bond into shares.
Yesterday the former VenFin announced that R&V Technology, a subsidiary of its "Newco", had converted the bonds, effectively giving the ultimate holding company Rembrandt a total 18.2% stake in the London-listed Dimension Data plc - the overall holding entity for the South African originated technology group.
DiData CFO David Sherrif says he welcomes the move to convert the bonds to shares as it relieves his group from paying the 5.375% interest payment and now just has to deal with ordinary shares.
"The deal has been good for the former VenFin because it gave them an extremely profitable dollar-return compared to other less-than-attractive dollar yields," he says.
Sherrif says the former VenFin company already has a seat on the board due to its original bond holding and this is occupied by former VenFin CEO Dillie Malherbe. It is unclear if the former VenFin will take up another seat.
He says the conversion of the bond gives the former VenFin a 12.2% stake, plus a further 7% it has bought on the open market.
Sherriff says this is now the largest single shareholder in DiData since Nedbank, then Nedcor, sold off the remainder of its original 103 million shares towards the middle of 2004.
"Malherbe has always indicated his company is a long-term shareholder in Dimension Data, and I have received no indication this will change," he says.
Dimension Data was trading 1 pence higher in early London trade at 57 pence, while on the Johannesburg Stock Exchange its local listed shares were up 10c at 610c after 290 000 shares changed hands.
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