29th August 1997. Dimension Data has announced an offer for the entire issued share capital of Datacraft Limited, a company listed on the Australian Stock Exchange. Dimension Data has advised that if successful, Datacraft will be delisted and merged in to the operation sof Australian distributor Com Tech to establish a dominant player in the network integration market in Australia.
With Datacraft owning 51% of Datacraft Asia Pacific, Dimension Data has advised that Datacraft Asia will remain a Singapore listed subsidiary and the directors are confident that growth prospects remain strong.
Datacraft’s executive chairman, George Kepper, has accepted Dimension Data Australia’s takeover bid for the company. The takeover will see Kepper receive A$150m for his 50% stake in Datacraft. However, since Dimension launched its bid, market investors have raised Datacraft’s share price to just above A$3/share, in the hope of a competing bidder arriving on the scene.
Kepper had already awarded an option over 10% of Datacraft after talks with Dimension started in April 1997. Dimension has won approval from the Foreign Investment Review Board for the takeover.
Subsequent to those announcements, Dimension
Data has acquired sufficient shar es in Datacr aft,
which will be delisted , to ensur e the full integration of
the business into Com Tech. The directors are confident
that a combination of Datacraft and Com Tech will
facilitate the establishment of a dominant play er in the
network integration market in A ustr alia.