South African multinational networking services company Dimension Data Holdings Ltd has cut $182m from the price it is paying for the European networking business of its South African rival Comparex Holdings Ltd. It is reducing the number of shares it is offering from 290 million to 250 million after due diligence inquiries showed that Comparex Networks’ operations in France and the UK are operating behind plan.
While the reduction cuts the purchase price from 8.12bn rand ($1.3bn) to 7bn rand ($1.1bn), Dimension Data said it was confident of the long-term potential of Comparex Networks and recognized the excellent progress made to date in developing a pan-European networking business.
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