Dicker Data shareholders approve $65.5m Express Data takeover

Vote results in landslide in favour of purchase

Dicker Data shareholders have rubber stamped the finance and purchase of competing distributor, Express Data.

RELATED: Dicker Data buys Express Data

A total of 121,481,742 shares were voted in favour of the $65.5 million buyout. Votes against amounted to 83,250, while 35,240 abstained.

The vote took place at a general meeting held on March 14 at Dicker Data's Kurnell office, which has recently been expanded to accommodate staff intake.

The distributor has taken on a $140m debt to fund the purchase. A credit line of $130m has been agreed to with Westpac Bank, which includes a $65.5m cash advance in the form of a bridging facility for a period of 18 days.

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This was required as Express Data parent, Dimension Data (DiData), would not assist in facilitating the financial assistance of the Corporations Act.

Dicker Data also secured a loan of $10m from Investec to provide overhead during the integration period which will commence from April 1 at the completion of the takeover.

In the meantime, Express Data will continue to operate as normal.

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Tags Dicker DatashareholdersExpress Dataacquisitiondistributorfinancebuyout

More about Dicker Data LimitedDimension Data Pty LtdExpress DataWestpacWestpacWestpac Bank

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