DTC
DTC
DTC - Datatec Limited - Westcon South Africa - New BEE Partner
Datatec Limited
(Incorporated in the Republic of South Africa)
Registration number 1994/005004/06
ISIN: ZAE000017745
JSE and LSE share code: DTC
WESTCON SOUTH AFRICA - NEW BEE PARTNER
Datatec Limited, "Datatec" or the "Group", (JSE and AIM: DTC), the
international Information and Communications Technology (ICT) group, announces
that the Mineworkers Investment Company (Pty) Ltd ("MIC") has become the new
BEE* partner in its South African distribution business Westcon South Africa
(Pty) Ltd ("WSA").
Datatec has purchased the minority stake in WSA from the previous BEE partner,
African Legend Computing (Pty) Ltd ("ALC") and MIC has subscribed for new
shares in WSA constituting 26% of the equity.
The Transaction
The rationale for the Transaction is to enhance WSA`s broad-based BEE
credentials. The Transaction has been effected in two stages:
1. Datatec acquired the 25.1% share of WSA held by ALC for a consideration
of R20 million to be settled by the issue R7 million worth of new Datatec
shares and R13 million in cash.
2. MIC subscribed for a 26% share of WSA in the form of new equity for a
cash consideration of R28 million.
The net result of the Transaction is that Datatec`s equity ownership of WSA
reduces slightly to 74%. The effective date of the Transaction is 30 November
2010.
Issue of shares
225,413 ordinary Datatec ZAR0.01 shares are to be issued and listed pursuant
to stage 1 of the Transaction. Application will be made to the London Stock
Exchange for the admission of these shares to the Alternative Investment
Market, and to the JSE Limited ("JSE") for the listing of these shares.
Listing on both exchanges is expected to become effective on or about 8
December 2010.
Small related party transaction per the Listings Requirements of the JSE
The owner of ALC was a director of WSA up to the time of the stage 1 of the
Transaction and is therefore a related party to Datatec. The Listings
Requirements of the JSE require written confirmation from an independent
professional expert confirming that stage 1 of the Transaction is fair to
Datatec`s shareholders. BDO Corporate Finance (Pty) Ltd, as the independent
professional expert acceptable to the JSE, has confirmed that the Transaction
is fair and their fairness opinion is available for inspection at Datatec`s
registered office until 7 January 2011.
Also in relation to stage 1 of the Transaction, the pro forma financial
effects on Datatec`s earnings per share, headline earnings per share, net
asset value ("NAV") per share and net tangible asset value ("NTAV") per share
for the period ended 31 August 2010 have been assessed and are all negligible
(below 3%).
* Black Economic Empowerment, a policy and programme of the Government of the
Republic of South Africa to affirm and empower those South Africans or
permanent residents who, on the basis of their race, were previously subjected
to adverse economic, social and other forms of statutorily enforced
discriminatory practices.
Enquiries:
Datatec Limited (www.datatec.co.za)
Ivan Dittrich - Chief Financial Officer +27 (0) 11 233 1221
Wilna de Villiers - Group Marketing Manager +27 (0) 11 233 1013
Jefferies International Limited
Chris Snoxall +44 (0) 20 7029 8000
College Hill
Adrian Duffield/Rozi Morris (UK) +44 (0) 20 7457 2020
Frederic Cornet (SA) +27 (0) 11 447 3030
1 December 2010
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 01/12/2010 09:00:01 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. |