Dimension Data has bought Nedbank Group`s 20% stake in Internet Solutions (IS), increasing its shareholding in the Internet service provider to 80%.
The value of the deal has not been disclosed.
Nedbank CEO Tom Boardman says the bank decided to sell the stake as part of its strategy of focusing on the core banking business, adding that it was logical to approach Dimension Data as the majority shareholder.
"Internet Solutions continues to perform well and is an important asset to the group," says DiData SA CEO Allan Cawood.
"We believe that the liberalisation of the telecommunications industry and the increased adoption of convergence technologies will provide further growth opportunities for us and we welcomed the chance to increase our shareholding in Internet Solutions," he adds.
Old Mutual owns the other 20% stake in IS.
DiData spokesman Michelle Atkins says the group will not attempt to buy that stake in the short term, although in the longer term would like to increase its shareholding to 100%.
"Old Mutual is very happy with its shareholding and there are no negotiations in place," she says. "Nedcor has been disposing of its non-core assets for some time, but Old Mutual has a different strategy in place.
"But if the opportunity arose, we would be very happy to negotiate."
DiData says IS has gross assets of R473 million, which will continue to be consolidated in DiData`s accounts.
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