The merger of the software interests of Plessey Corp Pty Ltd and BSW-Data in South Africa has been finalized and the merged business is predicting sales of $25.5m a year, mainly in applications software and systems in telecommunications and industry. Plessey will acquire 49.9% of BSW-Data with effect from January 1, 1996 paid for by the sale of its software division in Cape Town to BSW and the issue of 3.6m new Plessey shares to BSW- Data’s institutional investors. The balance of BSW would be held by BSW Holdings (Pty) Ltd, mainly owned by BSW management. Plessey will have pre-emptive rights to acquire these shares. The deal would dilute Plessey’s equity by 2.9% and would increase Plessey’s earnings per share by $0.15 in the year to the end of last month.
