Datatec subsidiary Westcon could raise up to $115 million through its planned Nasdaq listing, according to its registration document.
The group reported yesterday that it had filed a registration with the US`s Securities Exchange Commission.
This is a preliminary filing required to start the process of an initial public offering in the US.
The lengthy document says Westcon intends to use about $5.7 million of the net proceeds from the offering to repay a portion of its outstanding loan and accrued interest payable to Datatec.
The balance will be used for general corporate purposes, including working capital and future acquisitions and businesses and assets.
Datatec currently owns 92.5% of Westcon`s outstanding common stock.
Westcon, a specialty distributor of networking and communications equipment, contributes upwards of 80% of Datatec`s revenue.
Although the registration has been filed, the group says it has not yet become effective. The proposed sale to the public will begin as soon as practicable after the statement does become effective, it says.
Westcon CEO Alan Marc Smith and chairman John McCartney have resigned from the Datatec board in anticipation of the initial public offering, which the group says will ensure a more independent Westcon board. Smith and McCartney will retain their posts at Westcon.
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