General repurchase of shares voluntary 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 VOLUNTARY ANNOUNCEMENT 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, 29 August 2019 (“General Authority”), Datatec has repurchased 5 086 565 ordinary shares (“Repurchase Shares”) in aggregate, representing 2.4% of the Company's issued share capital (excluding treasury Shares) at the time the General Authority was granted. Following the purchase of the Repurchase Shares, the extent of the General Authority outstanding is 37,179,791 shares, representing 17.6% of the total issued share capital of the Company, at the time the General Authority was granted. 2. DETAILS OF THE REPURCHASE Details of the Repurchase are as follows: Dates of Repurchase: Thursday, 29 August 2019 to Wednesday, 25 September 2019 Highest repurchase price per Share: R35.00 Lowest repurchase price per Share: R31.99 Number of Shares repurchased: 5 086 565 Total value of Shares repurchased: R174 311 537 Total Shares in issue before cancellation of repurchased shares: 212 000 000 Total Shares in issue after cancellation of repurchased shares: 206 913 435 Number of treasury shares (unchanged): 668 220 The Shares which have been repurchased will be cancelled and delisted on or about 21 October 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 R175 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 7.0 % 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 FY20 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(a) of the Listings Requirements of the JSE Limited. Johannesburg 16 October 2019 Sponsor RAND MERCHANT BANK (A division of FirstRand Bank Limited) Date: 16/10/2019 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. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 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, information disseminated through SENS.