DTC
DTC
DTC - Datatec - Westcon Increases Credit Facilities In North America And Europe
By $156m To $360m
DATATEC LIMITED -
(Incorporated in the Republic of South Africa)
(Registration number: 1994/005004/06)
ISIN: ZAE000017745
Share Code: DTC
("Datatec" or "the Company" or "the Group")
WESTCON INCREASES CREDIT FACILITIES IN NORTH AMERICA AND EUROPE BY $156M TO
$360M
Datatec Limited ("Datatec", "the Group", JSE and LSE: DTC) announces that its
subsidiary Westcon Group, Inc., ("Westcon") has increased in aggregate its
banking facilities by $156m to $360m (up from $204m) for its North American and
European subsidiaries. These enhanced facilities are at a lower interest rate
and will provide additional working capital facilities to support Westcon`s
organic and acquisition growth programme, without recourse to Datatec`s own
facilities.
Westcon has recently acquired North American-based ReView Video as well as two
European-based distributors Crane Telecommunications and NOXS, adding more than
400 employees and approximately $350m in annual revenue. Westcon also recently
announced a joint venture with Netex, a specialty distributor based in Turkey,
adding to the emerging markets recently opened in New Zealand, Malaysia and
Dubai.
In North America, the new banking facilities consist of $280m, up from $190m,
with the ability to add $40m, if necessary. In Europe, Westcon`s subsidiary
increased its existing facilities by $66m to $80m.
Jens Montanana, Chief Executive of Datatec, comments:
"This is an important development for Westcon and the Datatec Group. It brings
down the cost of capital for Westcon and provides the business with considerable
headroom to continue its rapid organic and acquisitive growth without calling on
Datatec`s resources or shareholders. We think this is a significant refinancing
achievement not only have we prudently locked in more favourable terms in an
environment of increasing credit spreads but we have also increased our capacity
to borrow more, it attests to the fundamental strength of our underlying
businesses."
8 August 2007
Enquiries:
David Pfaff, Group Finance Director: +27 (0) 11 233 1221
Wilna de Villiers, Group Marketing Manager: +27 (0) 11 233 1013
Dresdner Kleinwort
James Rudd: +44 (0) 20 7475 7006
College Hill
Adrian Duffield/Corinna Dorward (UK press): +44 (0) 20 7457 2020
Nick Williams/Fred Cornet (SA press): +27 11 447 3030
Datatec Limited (www.datatec.co.za)
Date: 08/08/2007 08:00:01 Produced by the JSE SENS Department. |