After a few months' delay, the acquisition by Africa Data Centres (ADC) of Standard Bank’s Samrand data centre in South Africa seems to be going ahead.
Standard Bank's South Africa Data Centre is described as a 65,000 square metre site, built to Tier IV standards. It is located near Johannesburg.
The two buildings on the site, which allow for up to eight data centre modules of 1,500 square metres, are no longer needed by Standard Bank, which has decided to migrate over to AWS and Azure.
The site cost $87 million when it was built in 2010. It is not clear how much it is being sold for. In any case, although the sale was agreed in April and approved by South Africa’s Competition Tribunal soon afterwards, finding the funds proved difficult.
Strive Masiyiwa, the Zimbabwean owner of Liquid Telecom, of which ADC is a subsidiary, had to play a part in the purchase by working with his team to convince investors to help ADC to gather the funds needed to complete the takeover. Apparently the financing involved a combination of equity and sold shares to existing shareholders, as well as debt.
Africa Data Centres, which describes itself as Africa’s first network of interconnected, carrier and cloud-neutral data centre facilities, has said it will offer the facility to the market on an open-access basis.
Tricky though this process has been this is undoubtedly a positive outcome for the founder of Econet – especially considering Masiyiwa’s recent problems trying to find buyers for a stake of 20 to 34 percent of Liquid Telecom.
As we reported in August, the expected $600 million deal stalled in March as Covid-19 spread and potential buyers decided to adopt a wait-and-see approach.