South African network services firm Dimension Data SA has completed the sale of a 25% stake in its South African business for ZAR 380 million ($58 million) to a Black Economic Empowerment consortium, led by black empowerment investment holdings companies.
The two main investors are Ngcaba Holdings, lead by Andile Ngcaba, a former director general of the South African Department of Communications; and Safika, whose executive chairman, Moss Ngoasheng has sat on DiData’s board since October 2000 and on the group’s board since October 2002. Ngcaba will now also take on the role as executive chairman of DiData and will personally hold 9.81% of DiData, a stake worth about ZAR 150 million ($22.8 million).
Ngoasheng will take five percent of the business, with the remaining 10.2% to be split between the company’s current and future staff and a wide range of empowerment groups. These include a support group for abused women, a youth group and a women-owned construction company. The remaining 74.99% stays with the parent company, Johannesburg- and London-listed Dimension Data. The deal assumes DiData SA as a whole is worth ZAR 1.52 billion ($231 million).
DiData chairman Jeremy Ord said the new BEE profile will boost group business in Africa. It allows us to open doors that were closed to us, he said. DiData hasn’t previously participated in the public sector as it was restricted in terms of the work it could do. The public sector will be a much bigger opportunity for us going forward.