DATATEC LIMITED - Tax implications Special cash dividend of R23 per share to ordinary shareholders with a share election
8 January 2018 15:23
DTC 201801080019A
Tax implications – Special cash dividend of R23 per share to ordinary shareholders with a share election

Datatec Limited
Incorporated in the Republic of South Africa
(Registration Number: 1994/005004/06)
JSE share code: DTC
ISIN: ZAE000017745
("Datatec" or the "Company", JSE: DTC)

TAX IMPLICATIONS – SPECIAL CASH DIVIDEND OF R23 PER SHARE TO ORDINARY
SHAREHOLDERS     WITH   AN   ELECTION    TO   RECEIVE    NON-RENOUNCEABLE
CAPITALISATION ISSUE SHARES IN LIEU OF THE CASH DIVIDEND

Shareholders are referred to the circular dated Friday, 8 December 2017 (“Circular”), and the
finalisation announcement released by the Company on the Stock Exchange News Service
("SENS") on Friday, 22 December 2017 (“Finalisation Announcement”), in terms of which, inter alia,
the Company specified the terms upon which it would pay a special cash dividend of R23,00 per
ordinary share (“Share”) to shareholders (“the Cash Dividend”) with an election, in respect of all or
a part of their shareholding, to receive a scrip distribution of fully-paid capitalisation Shares ("the
Scrip Distribution") in lieu of the Cash Dividend.

At the request of the JSE, the Circular and Finalisation Announcement record that a portion of the
Cash Dividend will be funded from foreign sources. The JSE now requires the Company to clarify
that the Cash Dividend and Scrip Distribution will constitute a local (i.e. South African) distribution
and not a foreign distribution. The Company will pay the Cash Dividend and settle the issue price
of the Scrip Distribution from a local South African bank account. The reference to the funding of a
portion of the Cash Dividend from foreign sources means that the Company will be put in funds to
pay the relevant portion of the Cash Dividend and settle the relevant portion of the issue price of
the Scrip Distribution from cash generated by one of its foreign subsidiaries and distributed to the
Company prior to the payment of the Cash Dividend and issue of Scrip Distribution Shares. It is not
intended to mean, and does not mean, that a portion of the Cash Dividend and/or issue price of
any capitalisation Shares is paid or settled using foreign cash.

Shareholders are nevertheless specifically referred to the tax implications of the Cash Dividend and
the Scrip Distribution election as set out in paragraph 3.4 of the Circular.

The salient dates for the proposed Cash Dividend and Scrip Distribution alternative, as contained
in the Circular, have not been amended and remain unchanged. Any change will be announced on
SENS.


Johannesburg
8 January 2018

Transaction Sponsor
Pallidus Capital Proprietary Limited

Corporate Finance Advisor
Avior Capital Markets Proprietary Limited

Date: 08/01/2018 03:23:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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