DATATEC LIMITED - Cash payment applicable to fractional entitlements in terms of the Scrip Distribution

Cash payment applicable to fractional entitlements in terms of the Scrip Distribution

Datatec Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1994/005004/06)
ISIN: ZAE000017745
Share Code: DTC
("Datatec" or "the Company")




CASH PAYMENT APPLICABLE TO FRACTIONAL ENTITLEMENTS IN TERMS OF THE SCRIP DISTRIBUTION


Datatec shareholders (“Shareholders”) are referred to the announcement regarding the
Company’s audited financial results for the year ended 28 February 2023 and declaration of a cash
dividend with a scrip distribution alternative released on the Stock Exchange News Service
(“SENS”) of the JSE Limited (“JSE”) on Tuesday, 23 May 2023, in terms of which the board of
directors of the Company notified Shareholders that it had resolved to declare a gross final cash
dividend of 195 ZAR cents (“ Cash Dividend”) per Datatec ordinary share (“Datatec Share”) held
on the record date, being Friday, 14 July 2023 (“Record Date”). Shareholders were advised that
they would be entitled to elect to receive a scrip distribution of new, fully paid Datatec Shares in
proportion to their ordinary shareholding in Datatec on the Record Date instead of the Cash
Dividend (“Scrip Distribution” or “Scrip Distribution Alternative”).

Shareholders will be entitled to receive the Cash Dividend of 195 ZAR cents per Datatec Share in
respect of their shareholding as at the close of trading on the JSE on the Record Date, in proportion
to their ordinary shareholding in Datatec and to the extent that such Shareholders have not elected
to receive the Scrip Distribution Alternative in respect of all or a part of their shareholding.

Shareholders will, however, be entitled to elect to receive a Scrip Distribution of new, fully paid
Datatec Shares in respect of their shareholding in Datatec as at the Record Date, in respect of all
or part of their ordinary shareholding, instead of the Cash Dividend.

The ratio applicable to the Scrip Distribution entitlement was announced on SENS on Tuesday, 4
July 2023, being 5.35454 Scrip Distribution shares for every 100 Datatec Shares held on the Record
Date. If the application of this ratio gives rise to a fraction of a new ordinary share, such fraction of
a new ordinary share will be rounded down to the nearest whole number, resulting in allocations of
whole ordinary shares and a cash payment for the fraction ("Rounding Provision").

In accordance with the Listings Requirements of the JSE, the cash payment for the fractional
entitlement has been determined with reference to the volume weighted average price (“VWAP”)
of a Datatec Share traded on the JSE on Wednesday, 12 July 2023 (being the day on which Datatec
Shares began trading ‘ex' the entitlement to receive the Cash Dividend or the Scrip Distribution
Alternative), discounted by 10%.

Shareholders are accordingly advised that the basis applicable in determining the cash payment
for the fractional entitlement is 3274.35424 ZAR cents (the VWAP of Datatec Shares traded on the
JSE on Wednesday, 12 July 2023 of 3638.17138 ZAR cents, discounted by 10%).

Example of fractional entitlement:

This example assumes that a Shareholder holds 100 Datatec Shares at the close of business on
the Record Date and elects to receive the Scrip Distribution shares in respect of all their
shareholding.

New ordinary share entitlement =

100 x 195 ZAR cents / (3836.77149 -195) ZAR cents

= 5.35454 Scrip Distribution Shares

The Rounding Provision described above is then applied and the Shareholder will receive:

5 Scrip Distribution shares in respect of the 100 Shares held and a cash payment of 1160.88955
ZAR cents for the fractional entitlement (calculated as follows 0.35454 x 3274.35424= 1160.88955
ZAR cents).

This fractional entitlement payment will not be subject to Dividend Withholding Tax in terms of the
Income Tax Act 58 of 1962.

Johannesburg
13 July 2023

Sponsor
Pallidus Exchange Services Proprietary limited

Legal Advisors
Bowmans

Date: 13-07-2023 10:30:00
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