Dimension Data in talks to buy MWEB Business: sources
MyBroadband has received information that MWEB is in discussions with Dimension Data regarding the potential sale of three of its divisions – MWEB Business, MWEB Wi-Fi, and Optinet.
According to the information received, the deal may involve Naspers entering into an infrastructure outsource agreement with Dimension Data.
MWEB Business was founded in 1998 as the business division of MWEB to cater for the specific connectivity requirements of South Africa’s medium and large enterprises.
Optinet in turn is responsible for the core network and other network infrastructure for MWEB and Naspers.
Two independent industry players confirmed that they are aware of the discussions, but could not provide any further details about a potential deal between MWEB and Dimension Data.
MyBroadband asked MWEB CEO Derek Hershaw for feedback, but he said that he could not comment on this issue.
Dimension Data said that it has a strict policy with regards to market rumour, speculation, or hypothetical questions about the company or any of its affiliates or subsidiaries, and declined to comment.
“As a wholly owned NTT company, Dimension Data complies with all regulations regarding public disclosures of material events, financial results, and operations,” said spokesperson Hilary King.
In December 2013, rumours surfaced that Dimension Data and Naspers were in talks regarding a merger between MWEB and Internet Solutions (IS).
It was speculated that a deal between the two parties would leave Naspers with 20% of MWEB while Dimension Data would hold the remaining 80% of the company.
In response to the rumours, Hershaw said at the time that “MWEB is not for sale”, dismissing the speculation altogether.
This article was first published on MyBroadband.
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