| Tue 22 Sep 2009, 9:51 | | ALT - Altech increases stake in Kenya Data Networks |
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ALT - Altech increases stake in Kenya Data Networks
Allied Technologies Limited
Member of the Altron Group
Incorporated in the Republic of South Africa
(Registration number: 1946/020415/06)
Share code: ALT
ISIN number: ZAE000015251
("Altech" or "the company")
Altech increases stake in Kenya Data Networks
KDN to build a new data centre
JSE listed Allied Technologies Limited (Altech) today announced that it
would increase its economic stake in Kenya Data Networks Limited (KDN) from
51% to 60.8% by investing a further USD39.5 million into the company. The
capital injection will be used to roll out the KDN fibre optic network,
further establishing KDN as the key provider of broadband in East Africa.
"The additional equity shares in KDN to be subscribed for by Altech will be
non-voting, thus preserving the strong minority shareholder local influence
in KDN through our strategic partners, the Sameer Group. This local
influence is essential for retention of expertise and knowledge of the
region," said Altech`s CEO, Craig Venter.
It is said that the recently launched African East Coast undersea cable,
SEACOM, and in future other undersea cables like TEAMS, will change the face
of communications in Africa. The huge increase in bandwidth, through these
undersea cables, is a major focus of Altech`s strategy.
"KDN`s fibre optic network and the undersea cables will provide more
affordable international bandwidth to many East African countries, which,
until now have been totally reliant on expensive satellite bandwidth. In
addition, KDN will also provide centralised capacity management and cross
border customer services," said Venter
To further compliment these expansionary aims, Altech and its co-shareholder
in KDN, the Sameer Group have also invested an additional USD7.5 million in
KDN to build a data centre in Nairobi, Kenya. The data centre will offer
disaster recovery, virtual application hosting, data and application backup,
and an ethical hacking centre and data archiving facility to clients in the
areas that will be connected by the planned undersea cables. It is
anticipated that the data centre will be completed in approximately 12
months.
"KDN is in a strategic position to provide data warehousing services to East
Africa and the Middle East with its access to the undersea cables. Under the
Altech banner we now have end-to-end data service capabilities. Our
strategic alliance with SEACOM and KDN`s equity stake in TEAMS will supply
ample bandwidth for KDN to supply additional services such as call centers,
data centers and IP video on demand. We have abundant terrestrial fibre
linking the East African undersea cables to Kenya, Uganda and Rwanda; and
also interests in various ISP`s throughout East Africa, which take the
cheaper and enhanced broadband service to the client. The data centre will
add further services of data warehousing, disaster recovery and hosting to
our Group`s capabilities," Venter added.
KDN has established itself as the leader in provision of commercial leased
lines, constituting 75% of Kenya`s outbound traffic and currently provides
the majority of the backhaul traffic for Kenya`s three cellular network
operators Safaricom, Zain and Essar. It boasts a nationwide Kenyan fibre
optic network of over 4,000kms from Mombasa to the Ugandan border. The
network extends to Kampala in Uganda and to Kigali in Rwanda. KDN envisions
that the network will soon reach Tanzania and the DRC. KDN currently has
the largest WiMAX network in Africa with over 190,000 square kilometers
covered. It has been offering turn-key solutions using the different
technologies in its bouquet of Wi-Fi, WiMAX and fibre solutions across East
Africa.
"Through Altech`s TMT positioning, we are well placed to achieve overlapping
and merging interests in our various businesses, as convergence gathers
momentum. KDN is central to our strategy and our gateway to East Africa.
Our further investment in this business, is evidence of our confidence that
the continent and in particular East Africa is poised for massive growth,"
concluded Venter.
Notes to Editors:
Altech with a turnover in excess of R9 billion, is listed on the
Johannesburg Stock Exchange (JSE) and is involved in the Telecommunications,
Multi-media and information Technology (TMT) industries. It employs over
5000 employees in South Africa and abroad.
As a leading South African multi-billion rand high-technology group, Altech
is involved in the design, development and convergence of
telecommunications, multi-media systems and IT solutions. There is a strong
focus on the convergence of these technologies and Altech is now also
entrenched in the arena of secure technology solutions.
Altech has ongoing access to the latest technologies worldwide, while the
group`s own research and development programme actively encourages and
promotes internal technology.
FOR FURTHER INFORMATION PLEASE CONTACT:
Craig Venter: Chief Executive Officer
TEL: (011) 715-9004
FAX: (011) 715-9045
CELL: 083 236 8000
EMAIL: cventer@altech.co.za
OR
Wessie van der Westhuizen: Chief Strategic Officer
TEL: (011) 715-9000
FAX: (011) 715-9043
CELL: 082 800 1818
EMAIL: wvdwesthuizen@altech.co.za
OR
Joe Makhafola: Group Executive, Corporate Affairs, Marketing,
Government Liaison & Regulatory Affairs
TEL: (011) 715-9026
FAX: (011) 715-9047
CELL: 071 290 1735
EMAIL: jmakhafola@altech.co.za
www.altech.co.za
JSE code: ALT
22 September 2009
Sponsor: Investec Bank Limited
Date: 22/09/2009 09:51:01 Produced by the JSE SENS Department.
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