DATATEC LIMITED - General repurchase of shares

General repurchase of shares

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

GENERAL REPURCHASE OF SHARES

1.    INTRODUCTION

      Shareholders are advised that in accordance with the general authority granted by
      shareholders at the Company’s annual general meeting held on Thursday, 20 September
      2018 (“General Authority”), Datatec has cumulatively repurchased 7 144 307 ordinary
      Datatec shares in the aggregate, representing 3.002%% of the Company's issued share
      capital (excluding treasury shares) ("Repurchase").


2.    DETAILS OF THE REPURCHASE

      Details of the Repurchase are as follows:

      Dates of Repurchase:                                        Thursday, 20 September 2018
                                                                  to Friday, 07 December 2018
      Highest repurchase price per share:                         R27.50
      Lowest repurchase price per share:                          R21.81
      Number of shares repurchased:                               7 144 307
      Total value of shares repurchased:                          R167 663 003
      The number of shares which may still be
      repurchased by the Company in terms of the
      General Authority:                                          4 754 427
      The percentage of shares which may still be
      repurchased by the Company in terms of the
      General Authority:                                          1.998%
      Total shares in issue before repurchase:                    237 988 988
      Total shares in issue after cancellation of
      repurchased shares:                                         230 844 681
      Number of treasury shares (unchanged):                      14 315

      Application has been made to the JSE Limited for the cancellation and delisting of the
      repurchased shares, with effect from the commencement of business on or about 14
      December 2018.


3.    STATEMENT BY THE BOARD

      The Board has considered the effect of the Repurchase and is of the opinion that, for a period
      of 12 months following the date of the Repurchase:

      -   the Company and its subsidiaries (the “group”) will be able in the ordinary course of
          business to pay its debts;
      -   the assets of the Company and the group will be in excess of the liabilities of the
          Company and the group. For this purpose, the assets and liabilities were recognised
          and measured in accordance with the accounting policies used in the latest audited
          annual group financial statements;
     -    the share capital and reserves of the Company and the group will be adequate for
          ordinary business purposes;
     -    the working capital of the Company and the group will be adequate for ordinary
          business purposes; and
     -    the Company and the group have passed the solvency and liquidity test and since the
          test was performed, there have been no material changes to the financial position of the
          group.


4.   SOURCE OF FUNDS

     The Repurchase was funded from the Company's available cash resources.


5.   FINANCIAL INFORMATION

     The Company’s cash balances decreased by R168.3 million as a result of the Repurchase
     and, on cancellation of the repurchased shares, share capital and share premium will reduce
     by the same amount.

     Interest receivable at rates of approximately 7.0 % per annum (pre-tax) will be foregone on
     the cash resources used to acquire the repurchased shares.

     The reduced number of shares in issue after cancellation of the repurchased shares will
     result in a lower weighted average number of shares used to calculate earnings per share in
     future reporting periods


6.   COMPLIANCE WITH PARAGRAPH 5.72 OF THE LISTINGS REQUIREMENTS

     The Repurchase was effected through the order book operated by the JSE and done without
     any prior understanding or arrangement between the Company and the counter parties. A
     portion of the repurchase programme was executed during the Company’s interim results
     closed period. The Company had put in place a repurchase programme and submitted this
     to the JSE in writing prior to the commencement of the closed period. An independent third
     party then executed the repurchase programme, uninfluenced by the Company, during the
     closed period.

     Accordingly, the Company has complied with paragraph 5.72 of the JSE Limited Listings
     Requirements.


Johannesburg
10 December 2018

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

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