DTC 201812100006A
General repurchase of shares
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
1. INTRODUCTION
Shareholders are advised that in accordance with the general authority granted by
shareholders at the Company’s annual general meeting held on Thursday, 20 September
2018 ("General Authority"), Datatec has cumulatively repurchased 7 144 307 ordinary
Datatec shares in the aggregate, representing 3.002%% of the Company's issued share
capital (excluding treasury shares) ("Repurchase").
2. DETAILS OF THE REPURCHASE
Details of the Repurchase are as follows:
Dates of Repurchase: Thursday, 20 September 2018
to Friday, 07 December 2018
Highest repurchase price per share: R27.50
Lowest repurchase price per share: R21.81
Number of shares repurchased: 7 144 307
Total value of shares repurchased: R167 663 003
The number of shares which may still be
repurchased by the Company in terms of the
General Authority: 4 754 427
The percentage of shares which may still be
repurchased by the Company in terms of the
General Authority: 1.998%
Total shares in issue before repurchase: 237 988 988
Total shares in issue after cancellation of
repurchased shares: 230 844 681
Number of treasury shares (unchanged): 14 315
Application has been made to the JSE Limited for the cancellation and delisting of the
repurchased shares, with effect from the commencement of business on or about 14
December 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 R168.3 million as a result of the Repurchase
and, on cancellation of the repurchased shares, share capital and share premium will reduce
by the same amount.
Interest receivable at rates of approximately 7.0 % per annum (pre-tax) will be foregone on
the cash resources used to acquire the repurchased shares.
The reduced number of shares in issue after cancellation of the repurchased shares will
result in a lower weighted average number of shares used to calculate earnings per share in
future reporting periods
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. A
portion of the repurchase programme was executed during the Company’s interim results
closed period. 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 JSE Limited Listings
Requirements.
Johannesburg
10 December 2018
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
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