DTC : 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 Annual General Meeting held on Thursday, 29 August 2019 ("General
      Authority"), Datatec has repurchased 5 086 565 ordinary shares ("Repurchase Shares") in
      aggregate, representing 2.4% of the Company's issued share capital (excluding treasury
      Shares) at the time the General Authority was granted. Following the purchase of the
      Repurchase Shares, the extent of the General Authority outstanding is 37,179,791 shares,
      representing 17.6% of the total issued share capital of the Company, at the time the General
      Authority was granted.

2.    DETAILS OF THE REPURCHASE

      Details of the Repurchase are as follows:

      Dates of Repurchase:                                        Thursday, 29 August 2019
                                                                  to Wednesday, 25 September 2019
      Highest repurchase price per Share:                         R35.00
      Lowest repurchase price per Share:                          R31.99
      Number of Shares repurchased:                               5 086 565
      Total value of Shares repurchased:                          R174 311 537

      Total Shares in issue before cancellation of
      repurchased shares:                                         212 000 000
      Total Shares in issue after cancellation of
      repurchased shares:                                         206 913 435
      Number of treasury shares (unchanged):                      668 220

      The Shares which have been repurchased will be cancelled and delisted on or about 21 October
      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 R175 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. A
     portion of the repurchase programme was executed during the Company's FY20 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(a) of the Listings Requirements of
     the JSE Limited.


Johannesburg
16 October 2019

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

Date: 16/10/2019 08:00:00
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