The company told shareholders in an announcement yesterday it would buy the 40% of Datanet it does not own from the Lello Family Trust and Leendert Pronk.
Datanet distributes copper, fibre, wireless and related information and communications technology network hardware and allied infrastructure. Pinnacle already owns 60% of Datanet.
The listed company says it wants to “re-engineer and reposition the business within the group in a manner that requires Datanet to be wholly-owned”.
Pinnacle believes the re-engineering plans “will better realise the potential that it sees in this business, particularly in view of the fact the business augments the product range offered in the group's core business lines”.
The company will issue two million shares, at R8.40 each, to pay for the acquisition. The deal is subject to conditions.
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