Punt­ing for arivia.kom

Finweek English Edition - - Communication & technology - BELINDA AN­DER­SON

to get their hands on lu­cra­tive, five-year out­sourc­ing con­tracts from Transnet and Eskom. Those are up for grabs as part of the sale of State-owned ICT ser­vices com­pany arivia.kom.

De­tails at this stage are scant, be­cause the process seems shrouded in a veil of se­crecy known in the world of cor­po­rate fi­nance as “non-dis­clo­sure agree­ments” (NDAs).

How­ever, what is known is that Eskom and Transnet – which own 58,5% and 41,5% of arivia.kom re­spec­tively – in­vited “ex­pres­sions of in­ter­est” from LARGE OUT­SOURC­ING CON­TRACTS are few and far be­tween. That’s why it seems ev­ery­one who is any­one in the in­for­ma­tion and com­mu­ni­ca­tion tech­nol­ogy ser­vices in­dus­try is clam­our­ing the in­dus­try, with the clos­ing date for re­sponses be­ing 14 March this year. Eskom and Transnet are lead­ing the process but have ap­pointed Gart­ner as con­sul­tants. Both Di­men­sion Data and Gi­ji­maAst con­firmed they were among those that had cast a line in the wa­ter. But many other com­pa­nies are be­lieved to have re­sponded.

Di­data strat­egy ex­ec­u­tive Derek Wil­cocks says that, in prin­ci­ple, it was in­ter­ested in arivia.kom but was bound by an NDA not to say more than that.

Gi­ji­maAst CEO John Miller says it could also be in­ter­ested as part of a process of look­ing to di­ver­sify its busi­ness into new mar­kets and op­ti­mise mar­gins.

Formed from the con­sol­i­da­tion of the IT as­sets of Eskom, Transnet and Denel in 2001, arivia.kom has a man­date to

Both Di­men­sion Data and Gi­ji­maAst

con­firmed they were among those that had cast a line

in the wa­ter.

com­pete for private sec­tor busi­ness, though it still de­rives the bulk of its rev­enue from its tra­di­tional client base.

All three pub­lic cor­po­ra­tions orig­i­nally held stakes in arivia.kom. How­ever, Denel di­vested its share some time ago and Transnet is cur­rently sell­ing its non-core as­sets.

Any com­pany look­ing to buy arivia. kom would pre­sum­ably have to con­sider is­sues such as deal­ing with trade unions and sift­ing out the good from the bad in the com­pany.

Has ex­pressed in­ter­est. Derek Wil­cocks

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