DTC - Datatec - Acquisition of minority interest i
3 October 2007 8:00
DTC
 DTC                                                                             
DTC - Datatec - Acquisition of minority interest in logicalis South America     
DATATEC LIMITED                                                                 
(Incorporated in the Republic of South Africa)                                  
(Registration number: 1994/005004/06)                                           
ISIN: ZAE000017745                                                              
Share Code: DTC                                                                 
("Datatec")                                                                     
ACQUISITION OF MINORITY INTEREST IN LOGICALIS SOUTH AMERICA                     
1.   INTRODUCTION AND RATIONALE                                                 
Datatec announces that its subsidiary Logicalis Group has acquired the          
outstanding 20.04% interest in Logicalis South America Ltd ("LSAL") which it    
does not already own for a maximum consideration of $6.2 million.               
2.   THE ACQUISITION                                                            
2.1  The business of LSAL                                                       
Logicalis Group`s South American business provides integrated ICT solutions     
delivering secure network and communications infrastructure and services across 
South America with offices in Argentina, Brazil, Chile, Paraguay, Peru and      
Uruguay.                                                                        
2.2  Consideration                                                              
The consideration payable on completion will comprise the issue of 398,459 new  
ordinary Datatec shares and $2 million in cash payable on completion. The cash  
consideration will be funded from Logicalis Group`s existing cash resources.    
Additional contingent consideration of a maximum of $2 million will become      
payable if certain profit targets are met by LSAL and its subsidiaries in the   
financial years ending 29 February 2008, 28 February 2009 and 28 February 2010. 
2.3  Financial effects                                                          
The acquisition was immediately preceded on 31 August 2007 by the capitalisation
of loans payable by LSAL to Logicalis Group ($1.7 million) and Mr Carlos Lorenzo
($0.5 million).  After this capitalisation the share of net assets of LSAL being
acquired is $2.2 million.  The share of EBITDA of LSAL for the year ended 28    
February 2007 attributable to the minority interest being acquired is $0.7      
million.                                                                        
The pro forma financial effects of the transaction on Datatec`s earnings per    
share, headline earnings per share, net asset value per share and net tangible  
asset value per share for the year/period ended 28 February 2007 are not        
significant (i.e. are less than 3%), and have therefore not been disclosed.     
3.   CONDITIONS PRECEDENT AND LISTING                                           
The implementation of the acquisition is not subject to any conditions          
precedent.                                                                      
Application has been made to the London Stock Exchange for the admission of the 
new Datatec shares to the Alternative Investment Market, and to the JSE Limited 
for the listing of these shares. Listing on both exchanges is expected to become
effective on (10) October 2007.                                                 
4.   SMALL RELATED PARTY TRANSACTION                                            
As the minority interest in LSAL will be acquired from Mr Carlos Lorenzo, who is
a director of LSAL and its subsidiaries and therefore a related party of        
Datatec. The Listings Requirements of the JSE require written confirmation from 
an independent professional expert, confirming that the Acquisition is fair and 
reasonable to Datatec`s shareholders. Deloitte & Touche has confirmed that the  
Acquisition is fair and reasonable and their report is available for inspection 
at Datatec`s registered office until 1 November 2007.                           
Sandton                                                                         
2 October 2007                                                                  
Merchant bank and sponsor                                                       
RAND MERCHANT BANK (A division of FirstRand Bank Limited)                       
Date: 03/10/2007 08:00:01 Produced by the JSE SENS Department.                  
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