TOKYO (Reuters) - Nippon Telegraph and Telephone Corp (NTT) is buying South African IT firm Dimension Data for up to 2.12 billion pounds to expand into overseas markets, including in fast-growing Africa.
Johannesburg-listed Dimension Data shares jumped more than 20 percent after Japan's top telecoms operator announced the bid on Thursday.
NTT plans to launch a tender offer for all outstanding shares in Dimension Data, a major reseller for Cisco Systems. The South African firm provides IT-related services in the United States, Europe and Asia.
"I think it's a good move to have a business base in South Africa, given its growth potential," said Fujio Ando, senior managing director at Chibagin Asset Management.
"NTT has to expand overseas operations since the Japanese market has almost reached saturation. A stronger yen provides good opportunities for Japanese companies to buy overseas assets," he said.
