In a very interesting move, Pinnacle Technology Holdings has taken a 29.97% stake in Datacentrix for just over R237m. In the past, Pinnacle was a provider of hardware and has done very well from that and this move now sees it moving into ICT services, which offer higher margins and annuity revenue. Datacentrix’s share price had been heading south for a while and Pinnacle obviously feels it can shake things up and get the business growing again. But the almost 30% holding does not give them control, just a couple of seats on the board, and surely they’d ultimately want more than just some board seats? Bottom line is it’s going to be interesting to see how the Datacentrix board and management team respond and how Pinnacle will extract value without upping its stake. Maybe AKA Capital (sort of a BEE private equity holding company), which holds 40% of Datacentrix, would be interested in selling?
Pinnacle Technology Holdings