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Finalisation Announcement and Ratio Applicable to the Scrip Distribution
Datatec Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1994/005004/06)
ISIN: ZAE000017745
Share Code: JSE: DTC
OTCQX: DTTLF
("Datatec" or the “Company")
FINALISATION ANNOUNCEMENT AND RATIO APPLICABLE TO THE SCRIP DISTRIBUTION
Datatec shareholders (“Shareholders”) are referred to the announcement regarding the declaration of the special
cash dividend with a scrip distribution alternative released on the Stock Exchange News Service (“SENS”) of the
JSE Limited (“JSE”) on Monday, 24 August 2026, in terms of which the board of directors of the Company notified
Shareholders that it had resolved to return ZAR 7,053,380 522 (equivalent to approximately $435 million) to
Shareholders by declaring a special cash dividend of 2900 ZAR cents per Datatec ordinary share (“Datatec
Ordinary Share”) held on the record date, being Friday, 16 October 2026 (“Record Date”) (“Special Cash
Dividend”). Shareholders were further advised that they would be entitled to elect to receive a scrip distribution of
new, fully paid Datatec Ordinary Shares in proportion to their ordinary shareholding in Datatec on the Record Date
instead of the Special Cash Dividend (“Scrip Distribution” or “Scrip Distribution Alternative”).
A circular setting out the terms of the Special Cash Dividend and the Scrip Distribution Alternative, including a
Form of Election to elect to receive the Scrip Distribution Alternative, was distributed to Shareholders on
Wednesday, 26 August 2026 (“Circular”).
The number of Scrip Distribution shares to which each Shareholder will become entitled pursuant to the Scrip
Distribution (subject to their election thereto) will be determined by reference to such Shareholder's ordinary
shareholding in Datatec (at the close of trade on the JSE on the Record Date) in relation to the ratio that 2900 ZAR
cents bears to the volume weighted average price (“VWAP”) of a Datatec Ordinary Share traded on the JSE during
the 30-day trading period ending on Monday, 5 October 2026, less the amount of the Special Cash Dividend,
provided that, where the application of this ratio gives rise to a fraction of a Datatec Ordinary Share, the rounding
principles will be applied.
The 30-day VWAP less the amount of the Special Cash Dividend at close of trading on the securities exchange
operated by the JSE on Monday, 5 October 2026 was 5062.63652 ZAR cents per share (being 7962.636518 ZAR
cents minus 2900 ZAR cents). The ratio of Scrip Distribution shares to which each Shareholder will become entitled
pursuant to the Scrip Distribution Alternative (to the extent that such Shareholder elects to receive the Scrip
Distribution shares) is therefore 57.28241 Scrip Distribution shares per 100 Datatec Ordinary Shares held on the
Record Date. 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 Datatec Ordinary Share, such fraction of a new Datatec 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”). The applicable cash payment will be determined with
reference to the VWAP of a Datatec Ordinary Share traded on the JSE on Wednesday, 14 October 2026, (being
the day on which Datatec Ordinary Shares begin trading “ex” the entitlement to receive the Special Cash Dividend
or the Scrip Distribution Alternative), discounted by 10%. Details of the cash payment will be announced on SENS
on Thursday, 15 October 2026 by 11h00.
Shareholders are referred to paragraph 3.4.4. of the Circular in which it is stated that the Scrip Distribution
Alternative and cash paid for a fraction of a Datatec Ordinary Share will not be subject to Dividend Withholding
Tax (“DWT”) in terms of the Income Tax Act 58 of 1962 (“ITA”). Recipients of the fractional amount may be subject
to income tax or capital gains tax, depending on their particular circumstances. Furthermore, Shareholders are
referred to paragraph 3.4.1 of the Circular in which stated that the Special Cash Dividend is likely to have tax
implications for both resident and non-resident Shareholders. In terms of the ITA, the Special Cash Dividend will,
unless exempt, be subject to DWT.
Example of Scrip Distribution entitlement
This example assumes that a Shareholder holds 100 Datatec Ordinary 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 2 900 ZAR cents / (7962.636518 - 2900) ZAR cents
= 57.28241 Scrip Distribution shares (then apply the Rounding Provision described above) and the shareholder
will receive:
57 Scrip Distribution shares in respect of the 100 Datatec Ordinary Shares held plus the applicable cash payment
to be determined as described above.
The application to the Financial Surveillance Department of the South African Reserve Bank for the payment of
the Special Cash Dividend and the Scrip Distribution Alternative was approved on Wednesday, 26 August 2026.
Johannesburg
6 October 2026
Sponsor
Pallidus Exchange Services Proprietary Limited
Legal Advisors
Bowmans
Date: 06/10/2026 11:00:00
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indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
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