General repurchase of shares announcement 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 ANNOUNCEMENT 1. INTRODUCTION The board of directors of the Company ("Board") hereby advises shareholders that the Company, in accordance with the general authority granted by shareholders at the Company’s general meeting held on Monday, 15 January 2019 (“General Authority”), has cumulatively repurchased from shareholders 11 300 000 ordinary shares (“Shares”) in aggregate, representing 5.0% of the Company's issued share capital and the General Authority has therefore now been fully utilised. On 4 March 2019, shareholders were advised that Datatec had cumulatively repurchased 6 900 000 ordinary Datatec shares in aggregate under the General Authority, representing 3.05% of the Company's issued share capital and these shares were subsequently cancelled and delisted. A further 4 400 000 ordinary Datatec shares, representing 1.95% of the Company’s issued share capital, were repurchased during the period commencing 4 March 2019 up to and including 21 June 2019 ("Repurchase"). This additional Repurchase brings the total repurchased shares under the General Authority to 5.0% of the Company’s issued share capital. 2. DETAILS OF THE REPURCHASE Details of the Repurchase are as follows: Dates of Repurchase: 4 March 2019 to 21 June 2019 Highest repurchase price per Share: R 36.00 Lowest repurchase price per Share: R 30.94 Number of Shares repurchased: 4 400 000 Total value of Shares repurchased: R 146 148 124 Total Shares in issue before the Repurchase: 219 200 000 Total Shares in issue after cancellation of repurchased shares: 214 800 000 Number of treasury shares (unchanged): 650 000 Application has been made to the JSE to cancel and delist the shares which have been repurchased, with effect from Tuesday, 25 June 2019. 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 R146.7 million as a result of the Repurchase and, on cancellation of the Repurchase Shares, share capital and share premium will reduce by the same amount. Interest receivable at rates of approximately 7% per annum (pre-tax) will be foregone on the cash resources used to acquire the Repurchase Shares. The reduced number of Shares in issue after cancellation of the Repurchase 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 FY19 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 Listings Requirements of the JSE. Johannesburg 25 June 2019 Sponsor RAND MERCHANT BANK (A division of FirstRand Bank Limited) Date: 25/06/2019 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. 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