Sectors Shares

Datatec Limited - Cash Fractional Entitlement Applicable To The Scrip Distribution

Release Date: 11/01/2018 11:55
Code(s): DTC
 
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Cash fractional entitlement applicable to the scrip distribution

Datatec Limited
Incorporated in the Republic of South Africa
(Registration Number: 1994/005004/06)
JSE share code: DTC
ISIN: ZAE000017745
("Datatec" or the "Company", JSE: DTC)

CASH FRACTIONAL ENTITLEMENT APPLICABLE TO THE SCRIP DISTRIBUTION

The ordinary shareholders of the Company ("Shareholders") are referred to the announcements released by
the Company on the Stock Exchange News Service (“SENS”) on Wednesday, 29 November 2017, and
Friday, 8 December 2017, in terms of which the Company declared a special cash dividend of R23,00 per
ordinary share ("Share") to Shareholders ("Cash Dividend") on the basis that –

    1.   any Shareholder is entitled, in lieu of the Cash Dividend, to elect to receive a scrip distribution of
         fully-paid capitalisation Shares in respect of all or a part of their shareholding as at the close of
         business on the Record Date, being Friday, 12 January 2018 ("the Scrip Distribution"); or

    2.   if any Shareholder fails to make an election or does not make its election properly or timeously, the
         default position is that such Shareholder will receive (and is deemed to have elected to receive) the
         Cash Dividend in respect of his entire shareholding as at the close of business on the Record Date.

The ratio applicable to the Scrip Distribution entitlement was announced on SENS on Friday, 22 December
2017 and clarified on Tuesday, 2 January 2018, being 67.19252 capitalisation Shares per 100 Shares held by
each Shareholder at the close of business on the Record Date.

If the application of this ratio of entitlement gives rise to a fraction of a Share, such fraction 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 applicable cash payment has been determined with reference to the volume-weighted average price
("VWAP") of a Share traded on the JSE on Wednesday, 10 January 2018 (being the day on which a Share
begins trading 'ex' the entitlement to receive the Cash Dividend or the Scrip Distribution alternative), discounted
by 10%.

Accordingly, Shareholders are advised that the basis applicable in determining the cash payment for the
fractional entitlement is R28,94 (R32,16, discounted by 10%). The cash payment for the fractional entitlement
net of the applicable dividend withholding tax (i.e. 20%) is R23,15.

Example of fractional entitlement:

If a South African resident individual Shareholder holds 100 Shares at the close of business on the Record
Date (being Friday, 12 January 2018) and has elected to receive the Scrip Distribution alternative in respect
of all of his shareholding.

New Share entitlement = 100 x 67.19252% = 67.19252 new Shares.

The Rounding Provision is then applied and the Shareholder will receive 67 Scrip Distribution Shares in respect
of the 100 Shares held; and a cash payment for the fractional entitlement based on the R28,94 noted above
of 0.19252 x 28,94 = R5,57. This fractional entitlement payment is subject to 20% dividend withholding tax,
resulting in a net cash payment of R4,46, in this example.

Johannesburg
11 January 2018

Transaction Sponsor
Pallidus Capital Proprietary Limited

Corporate Finance Advisor
Avior Capital Markets Proprietary Limited

Date: 11/01/2018 11:55:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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