The technology sector fallout has left its mark on banking group Nedcor`s earnings, with the group incurring a R690 million after-tax write down on its holdings in Dimension Data.
Speaking at the release of Nedcor`s interim results for the six months to 30 June, Nedcor CEO Richard Laubscher said market conditions make it difficult for Nedcor to sell the 103 million shares it owns in Didata.
"We would like to lighten the exposure to Didata and we will do so if the opportunity arises," he said.
The holding in Didata, which was marked-to-market at R6.45 a share at 30 June, from R14.50 at 31 December, is recorded as an exceptional item on the income statement, meaning the write down is not recorded in either the headline earnings figure of R1.524 billion or the core earnings figure of R1.56 billion. Core earnings exclude the effects of translation losses or gains on assets held in foreign currencies. It is however recorded in the attributable earnings figure of R738 million.
Dimension Data shares ended Tuesday at R4.70, down 15 cents on the day. Nedcor ended 100 cents down at R118.50.
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