DATATEC LIMITED - General repurchase of shares announcement
20 September 2018 8:00
DTC 201809200003A
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")



      The board of directors of the Company ("Board") hereby advises shareholders that the
      Company, in accordance with the general authority granted by shareholders at the
      Company’s general meeting held on Tuesday, 24 July 2018 (“General Authority”), has
      cumulatively repurchased from shareholders 4 971 012 ordinary shares (“Shares”) in the
      aggregate, representing 2.05% of the Company's issued share capital (excluding treasury
      Shares) ("Repurchase").

      The Repurchase was conducted during the period commencing 1 August 2018 up to and
      including 19 September 2018 at which point the general authority expired. The remaining
      2.95% of the 5% granted in terms of the General Authority was therefore not utilised.
      Accordingly, a new resolution to grant the Company a general authority to repurchase shares
      will be voted on at the Company’s Annual General meeting later today. This will enable the
      Company to resume the repurchase process.


      Details of the Repurchase are as follows:

      Dates of Repurchase:                                        1 August 2018
                                                                  to 19 September 2018
      Highest repurchase price per Share:                         R 24.97
      Lowest repurchase price per Share:                          R 21.76
      Number of Shares repurchased:                               4 971 012
      Total value of Shares repurchased:                          R 113 996 540

      Total Shares in issue before repurchase:                    242 960 000
      Total Shares in issue after cancellation of
      repurchased shares:                                         237 988 988
      Number of treasury shares (unchanged):                      14 315

      Application has been made to the JSE to cancel and delist the shares which have been
      repurchased, with effect from today.


      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


     The Repurchase was funded from the Company's available cash resources.


     The Company’s cash balances decreased by R114.5 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 receivable at rates of approximately 7% per annum (pre tax) will be foregone on the
     cash resources used to acquire the Repurchase Shares.

     The reduced number of Shares in issue after cancellation of the Repurchase Shares will
     result in a lower weighted average number of shares used to calculate earnings per share in
     future reporting periods.


     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 continued during the Company’s interim results closed period as the Company
     had put in place a repurchase programme and submitted this to the JSE in writing prior to
     the commencement of the closed period. An independent third party then executed the
     repurchase programme, uninfluenced by the Company, during the closed period.

     Accordingly, the Company has complied with paragraph 5.72 of the Listings Requirements
     of the JSE.

20 September 2018

RAND MERCHANT BANK (A division of FirstRand Bank Limited)

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