Dimension Data (Didata) is set to acquire the Comparex European networking business in a complex deal valued at R8.1 billion, the largest in the history of South African IT.
The transaction is due to be completed in February next year, subject to certain conditions being met prior to completion.
Comparex will be issued with 290 million Didata shares valued at R28 per share. The shares represent 28.7% of the enlarged Didata share capital. Comparex is to unbundle these shares to its shareholders by June 2000 at the latest.
Nedcor, which owns 25.1% of the Didata international business, will acquire a 20.1% interest in Comparex at R1.1 billion in cash. It will then reduce its holding in Dimension Data International to 20.1%, so that it will hold 20.1% of the total offshore Didata networking assets.
Also on the cards is an international listing for the new entity.
The whole process is dependent on ratification by the boards and shareholders of Dimension Data and Comparex. The companies say the completion date is set for February because of the complexity of the transactions.
Due diligence investigations and approval from regulatory bodies including the Johannesburg Stock Exchange, the Competition Commission and the Revenue Service is still pending.
Commenting on the transaction, Roux Marnitz, chairman of Comparex Holdings, said "We are delighted to be able to contribute to the formation of a South African driven international networking giant with the real capability to compete on a truly global basis. Although this will mean giving up a part of our business that we have nurtured over the past couple of years, we believe that the path chosen is in the best interests of the businesses involved, our shareholders, and all staff concerned."
Marnitz said Comparex will remain a business with a strong international presence, with approximately two thirds of revenues still being derived offshore.
The transaction will not involve Comparex` international storage, open systems, enterprise, consulting or security businesses, nor any of its South African operations.
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