Dicker Data shareholders greenlight Express Data acquisition
Dicker Data shareholders have given the $65.5 million purchase of Express Data the greenlight.
At a general meeting last Friday, shareholders voted 121,481,742 to 85,230 in favour of the deal. Another 35,240 abstained.
Earlier, the board had advised that it had established a $130 million credit line from Westpac, to cover the acquisition of Express Data and working capital required to operate the combined Dicker Data and Express Data entities.
In a notice to the ASX, Dicker Data chairman and chief executive David Dicker said “Initially the $65.5 million for the acquisition of ED will be in the form of a bridging facility for a period of 18 days, whereby the purchase price will be paid to the vendor.
“This was required because the vendor, Dimension Data, would not assist in facilitating the financial assistance requirements of the Corporations Act.”
Dicker has also secured a $10 million loan from Investec to provide 'additional headroom during the period of integration of the combined entity'.
The sale, which includes the New Zealand and Australian operations of Express Data along with Express Online, is due to complete on 01 April.
Dicker says the board intends to issues shares 'sufficient to retire the remainder of the ED acquistion debt' around September 15, with a target price for the shares of more than $2.00.
“We believe that the company's performance and historic multiples will support this strategy and price.
“We expect this to represent up to 20% of the issued capital, thereby taking public ownership in DDR to approximately 24%.”