By Staff Writer
South Africa’s business mogul Andile Ngcaba, the chairman and the majority shareholder of the ICT (Information Communications and Technologies) specialist investor Convergence Partners, has sold his stake in Dimension Data and has left the IT services group, according to Techcentral.
Techcentral said Convergence Partners has sold its stake in Dimension Data Middle East and Africa for an undisclosed sum.
Ngcaba served as chairman of Dimension Data’s Middle East and Africa operations.
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.
In 2004, the BEE Consortium held a 25.01% equity stake in Dimension Data South Africa – now Dimension Data Middle East and Africa (DDMEA) – valued at R380 million.
At the time, the consortium comprised Ngcaba Holdings (now a subsidiary of Convergence Partners), Safika Holdings, a group of broad-based BEE participants comprising Previously Disadvantaged Individual employees of Dimension Data and another key previously disadvantaged individuals and nine broad-based groups.
In September 2012, Ngcaba – through Convergence Partners – re-invested his full stake back into the DDMEA business, while employees who worked for Dimension Data during the empowerment period were paid in full.