Well-known IT sector investor Andile Ngcaba has sold his stake in Dimension Data and has left the IT services group, where he served as chairman of its Middle East and Africa operations.
His investment vehicle, Convergence Partners, has sold its stake in Dimension Data Middle East and Africa for an undisclosed sum. It first invested in the company in 2004 as part of a broad-based black economic empowerment transaction.
The Duncan Village, East London-born Ngcaba, who served as a director-general of communications in the Nelson Mandela and Thabo Mbeki administrations — he quit government in 2003 — generated controversy when he led a grouping, called the Elephant Consortium, that bought a minority stake in Telkom from SBC Communications (now AT&T) and Telekom Malaysia. It sold its stake in 2010.
The contractual investment term with Dimension Data ended in September 2016 and Convergence Partners negotiated a “consensual exit to the investment” with the IT company.
“Convergence Partners has now fully exited its shareholding in Dimension Data and Ngcaba has stepped down from the various group boards on which he served and as executive chairman,” Convergence Partners said.
Ngcaba led a broad-based black economic empowerment consortium that acquired 25% of Dimension Data Middle East and Africa in September 2004.
The company said it “continues to invest in technology, media and telecommunications companies across sub-Saharan Africa that it believes will deliver enhanced returns for investors, while underpinning continental development”. — (c) 2017 NewsCentral Media
