Listed computer distributor Mustek has rejected Datatec's R101 million offer for Comztek.
Datatec said in September that it was in talks to buy all of Comztek for R97 million. At the time of the announcement, all of Comztek's management and shareholders, apart from Mustek, indicated they were in support of the deal.
Last week, the offer was increased by R4 million. Datatec had given Mustek until today to accept the bid.
Mustek owns almost 42% of the computer distributor, a stake it acquired in 1999 when it helped Comztek's management buy out the company. Comztek was formed in September 1999 when Leen van der Bijl and current Comztek MD Paul Conradie bought out the company, then called Comzlink, from Siltek and Q Data.
Datatec says in a statement it will not pursue Comztek any further.
Mustek founder and CEO David Kan says the board decided Comztek is a strategic fit for Mustek and doesn't want to sell.
Conradie was not immediately available to comment.
Related story:
Datatec increases Comztek offer
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