DATATEC LIMITED - General repurchase of shares voluntary announcement
29 August 2019 11:00
DTC 201908290028A
General repurchase of shares voluntary 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 VOLUNTARY ANNOUNCEMENT

1.    INTRODUCTION

      Shareholders are advised that, in accordance with the general authority granted by
      shareholders at the Company's general meeting held on Wednesday, 26 June 2019
      ("General Authority"), Datatec has further repurchased 2 353 558 ordinary shares ("Shares")
      in aggregate, representing 1.10% of the Company's issued share capital (excluding treasury
      Shares) ("Repurchase"). Following the Repurchase, the extent of the General Authority
      outstanding is 6 656 782 Shares (representing 3.11% of the total issued share capital of the
      Company at the time the General Authority was granted) but this will be unused as the
      General Authority expires today.

2.    DETAILS OF THE REPURCHASE

      Details of the Repurchase are as follows:

      Dates of Repurchase:                                        Wednesday, 24 July 2019
                                                                  to Wednesday, 28 August 2019
      Highest repurchase price per Share:                         R34.10
      Lowest repurchase price per Share:                          R28.00
      Number of Shares repurchased:                               2 353 558
      Total value of Shares repurchased:                          R78 387 977

      Total Shares in issue before cancellation of
      repurchased shares:                                         214 353 558
      Total Shares in issue after cancellation of
      repurchased shares:                                         212 000 000
      Number of treasury shares (unchanged):                      668 217

      The Shares which have been repurchased will be cancelled and delisted on or about 2
      September 2019.

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 R78.7 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 7.0 % 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. The
     Repurchase was not effected during any prohibited period.

     Accordingly, the Company has complied with paragraph 5.72(a) of the Listings
     Requirements of the JSE Limited.

Johannesburg
29 August 2019

Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)

Date: 29/08/2019 11:00:00
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