The decision to increase its holding in Datatec to 20% in May meant the Public Investment Corporation was one of the biggest gainers from Tuesday’s Datatec share price surge. The IT company announced the sale of its Westcon Americas business in a shares-and-cash deal worth about R10.2bn — or 85% of its market cap. US Fortune 500 IT company Synnex will pay a maximum of $800m, of which $500m will be settled in Synnex shares, giving Datatec a 10.25% share. Synnex has also agreed to buy up to 20% of the remaining Westcon business, Westcon International, for $60m. News of the Westcon Americas sale initially drove Datatec shares 26% higher, but the stock sold off during the day to close 10.5% higher. Westcon deals in technology distribution and is Datatec’s biggest revenue spinner but has been a drag on earnings of late. Its contribution to profit fell to 40% in the year to February, from 52% in 2016. The CEO of Datatec, Jens Montanana, said his group had spent about four years reposition...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.

Questions or problems? Email or call 0860 52 52 00. Got a subscription voucher? Redeem it now