DTC 201801230052A
General repurchase of shares 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 ANNOUNCEMENT
1. INTRODUCTION
The board of directors of the Company ("Board") hereby, in term of paragraph 11.27 of the
Listings Requirements of the JSE Ltd ("JSE"), advises shareholders that the Company, in
accordance with the general authority granted by shareholders at the Company’s annual
general meeting held on Thursday, 14 September 2017 ("General Authority"), has
cumulatively repurchased from shareholders, through the order book operated by the JSE,
and in a series of unrelated transactions without any prior understanding or arrangement
between the Company and these shareholders, 11 919 739 ordinary shares ("Shares") in
the aggregate, representing 4.66% of the Company's issued share capital (excluding
treasury Shares) ("Repurchase").
The Company reached the 3% repurchase threshold, provided for in the Listings
Requirements of the JSE, on Monday, 22 January 2018, hence requiring the publication of
this announcement.
2. DETAILS OF THE REPURCHASE
Details of the Repurchase are as follows:
Dates of Repurchase: Friday, 12 January 2018
to Monday, 22 January 2018
Highest repurchase price per Share: R33.50
Lowest repurchase price per Share: R30.99
Number of Shares repurchased: 11 919 739
Total value of Shares repurchased: R393 239 618
The number of Shares which may still be
repurchased by the Company in terms of the
General Authority: 30 473 785
The percentage of Shares which may still be
repurchased by the Company in terms of the
General Authority: 14.38%
Total Shares in issue: 255 737 717
Number of treasury shares (unchanged): 17 941
The shares which have been repurchased will be cancelled and delisted before 28 February
2018.
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 R394.8 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 will be foregone on the cash resources used to acquire the
Repurchase Shares.
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. The
Repurchase was not effected during any prohibited period and was not effected in terms a
repurchase programme. Accordingly, the Company has complied with paragraph 5.72 (a) of
the Listings Requirements of the JSE.
Johannesburg
23 January 2018
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
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