Finweek English Edition - - INVESTMENT -

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

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