On 15 July 2010, Nippon Telegraph and Telephone Corporation (“NTT”) Dimension Data Holdings plc (“Dimension Data” or “DiData”) announced that they have reached agreement on the terms of a cash offer to be made by NTT for 100% of Dimension Data. The offer, totalling approximately GBP 2.1 billion (R24.4 billion), was unanimously recommended by both Boards of Directors.

NTT, one of the largest global telecommunications service providers in the world, has limited presence in certain emerging markets where Dimension Data is very strong, specifically Africa and the Middle East. The transaction is a huge vote of confidence in DiData, South African and Africa, and the rationale of both parties is to capitalise on the significant growth opportunities that are unfolding.

Andile Ngcaba, Chairman of Dimension Data’s Middle East and Africa business (“DDMEA”), as well as of its minority shareholder Convergence Partners, is excited about the deal and how its positions DiData in this region. “With access to the resources, products and R&D of the NTT Group, DDMEA is better positioned than ever to grow its presence and capitalise on new and fast growing market opportunities, such as cloud computing. The deal is great for the country and the company”.

See attached press release

Convergence Partners recently visited Washington, DC and had the opportunity to spend time with New Dawn joint venture partner, Intelsat, and to see the New Dawn craft in advanced stages of construction, at the premises of craft manufacturer, Orbital Sciences Corporation. David Frankel of Altirah Capital, partner in the New Dawn venture, joined Convergence Partners’ Chairman, Andile Ngcaba, and Executive, Idan Segal.

New Dawn is a joint venture between Intelsat, the global leader in fixed satellite services, and an African consortium led by Convergence Partners, to create a new geostationary communications satellite for Africa. This first of its kind venture has a 25% African shareholding and is more than 90% financed by African institutions, including Nedbank, The African Development Bank and the Industrial Development Corporation.

The satellite is due for completion during Q4 2010, at which time it will be delivered to the launch site in French Guiana. Launch is scheduled for Q1 2011, whereafter the satellite will commence operating, providing much needed capacity for the African telecommunications and broadcasting sectors.

After the tour, Andile Ngcaba, said “it is both fascinating and very rewarding to see the physical New Dawn craft, after so many years of conceptualising and planning. I have no doubt it will make a difference to the continuing African growth story”.

See attached photographs of the New Dawn satellite in construction

The IEEE Communications Society is holding its 2010 flagship conference International Communications Conference (ICC2010) in Cape Town, South Africa from 23-27 May 2010. This is the first time that ICC has been held in Africa. The conference theme is “Communications: Accelerating Growth and Development” and aims to focus on the role that Communications is playing in this development.

Andile Ngcaba, Chairman of Convergence Partners, participated on the business panel after the keynote address by the Minister of Science and Technology. Andile participated alongside Telkom Group CEO, Reuben September and Etisalat, Nigeria CEO, Steven Evans. The panel presented their views on what was required for the communications industry to drive African growth and development. In the panel discussion, Andile highlighted the need to develop the terrestrial and inland infrastructure to meet the increased supply of international bandwidth that is reaching African shores over the next 5 years. This increase in available international capacity required a coordinated and cooperative approach between the various operators of cables to ensure that Africa has access to international points of presence in addition to the landing points of the various cables. In parallel to the deployment of this infrastructure, Africa needs to build data centres to support the growth in services and increased business demand for reliable, affordable and available hosting and managed services. In addition, African content, including the capture of its rich linguistic heritage, needs to be fostered through packaging and delivery to the world and local audiences via satellite, terrestrial and IP networks. Other panellists also argued for appropriate regulation of the industry to facilitate the continued investment in communications infrastructure on the African continent, thereby driving economic growth and development of the Continent.

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Inala Technologies and Convergence Partners Chairman, Andile Ngcaba announced the appointment of Executive Director, Laurentius Human, as Chief Executive Officer of Inala with effect from June 2010. The company, which has grown into one of Africa’s leading Telecommunications and Broadcast systems providers over the past 14 years, is currently represented in 17 African countries and is poised to expand into India, South America, the Middle East, and Turkey.

Human is well known in the technology sector in South Africa and Canada. He brings a wealth of local and international business experience and will provide stewardship to Inala through the next phase of its growth and international expansion.
Ngcaba said the current CEO, Braam de Villiers, would remain active in the company and continue to develop the company’s international business interests and assist in its global expansion.

See attached link

New Dawn, the first of its kind joint venture between Convergence Partners and Intelsat, is on track to launch its $250m geostationary communications satellite, which is targeted at the African market, by the end of the year, Flavien Bachabi, vice-president for Intelsat Africa said yesterday, 13 April 2010.

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Dimension Data once again proved its mettle across the African continent, winning the Top ICT Company in Africa Award at the 11^th African ICT Achievers Awards ceremony held on the 5^th December 2009.

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