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DATATEC LIMITED - Ratio applicable to the scrip distribution

Release Date: 11/11/2016 11:00
Code(s): DTC     PDF:  
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Ratio applicable to 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”)

RATIO APPLICABLE TO THE SCRIP DISTRIBUTION

Shareholders are referred to the Company’s unaudited interim
results for the six months ended 31 August 2016, published on the
Stock Exchange News Service (“SENS”) on 19 October 2016 in which
it declared an interim Scrip Distribution with a Cash Dividend
alternative.

A circular setting out the terms of the Scrip Distribution and
Cash Dividend alternative, including a Form of Election, (“the
Circular”) was posted to shareholders on 3 November 2016, as
announced on SENS on the same date. In addition, the Circular is
available on the Company’s website, www.datatec.com or
www.datatec.co.za.

Shareholders are advised that the number of Scrip Distribution
shares to which each Shareholder will become entitled pursuant to
the Scrip Distribution (to the extent that such Shareholder has
not elected to receive the Cash Dividend) will be determined by
reference to such Shareholder’s ordinary shareholding in Datatec
(at the close of business on the Record Date) in relation to the
ratio that 60 ZAR cents bears to 4699 ZAR cents, representing the
volume weighted average price (“VWAP”) of an ordinary Datatec
share traded on the JSE during the 30-day trading period ended on
Thursday, 10 November 2016. The ratio of Scrip Distribution shares
to which each Shareholder will become entitled pursuant to the
Scrip Distribution (to the extent that such Shareholder has not
elected to receive the Cash Dividend) is therefore 1,27687 Scrip
Distribution shares for every 100 ordinary shares held on the
Record Date:

100 x 60 ZAR cents
4699 ZAR cents        = 1,27687

Where a Shareholder’s entitlement   to new Datatec ordinary shares
calculated in accordance with the   above formula 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 shares and a cash payment for the fraction
(“Rounding Provision”).

The cash payment arising from the Rounding Provision will be
determined with reference to the VWAP of an ordinary Datatec share
traded on the JSE on Wednesday, 23 November 2016 (being the day on
which an ordinary Datatec share begins trading ‘ex’ the
entitlement to receive the Scrip Distribution or Cash Dividend
alternative), discounted by 10%. The applicable cash payment will
be announced on SENS on Thursday, 24 November 2016.

Example of Scrip Distribution entitlement:
This example assumes that a Shareholder holds 1000 ordinary shares
at the close of business on the Record Date and does not elect to
receive the Cash Dividend in respect of all or part of their
shareholding.

New ordinary share entitlement = 1000 x 1,27687%
= 12,7687 new shares
(then apply the Rounding Provision described above)
= 12 Scrip Distribution shares in respect of the 1000 ordinary
shares held and a cash payment for the fraction.

Sandton
11 November 2016

Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)

Date: 11/11/2016 11:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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