WHAT’S THE DEAL WITH PINNACLE AND DATACENTRIX?
Pinnacle’s sale of Infrasol to Datacentrix goes a long way in helping Pinnacle with its debt issue, but perhaps it also shows the t wo companies working together. This is a good deal considering Pinnacle owns 33% of Datacentrix and could maybe (I stress the maybe) see a merger of sorts between the two companies as opposed to the initial plan that appeared to be a takeover of Datacentrix by Pinnacle. 36One owns 10% of Datacentrix and 7.24% of Pinnacle. With Pinnacle almost a third larger than Datacentrix (and its 33% stake) it would not be a merger of equals but could solve the problem Pinnacle ran into when its share price collapsed and it couldn’t conclude the expected offer to Datacentrix minorities using high-valued Pinnacle shares. The takeover route is of course still open, albeit a case of needing to raise debt rather than using shares, but with Pinnacle’s debt situation improving it’s possible. But why would Datacentrix management close the above deal if it only helps a takeover?