DATATEC LIMITED - DTC : General repurchase of shares announcement
25 February 2020 16:59
DTC : 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")



      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 5 463 435 ordinary shares ("Repurchase
      Shares") in aggregate, representing 2.6% 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 31,716,356 shares,
      representing 15.0% of the total issued share capital of the Company, at the time the General
      Authority was granted.

      On 16 October 2019, shareholders were advised that Datatec had cumulatively repurchased 5
      086 565 ordinary Datatec shares in aggregate under the General Authority, representing 2.4%
      of the Company's issued share capital and these shares were subsequently cancelled and

      The Repurchase Shares were repurchased during the period commencing 18 October 2019 up
      to and including 24 February 2020. This additional repurchase brings the total repurchased
      shares under the General Authority to 5.0% of the Company's issued share capital.


      Details of the Repurchase are as follows:

      Dates of Repurchase:                                      Friday, 18 October 2019
                                                                to Monday, 24 February 2020
      Highest repurchase price per Share:                       R37.00
      Lowest repurchase price per Share:                        R31.08
      Number of shares repurchased:                             5 463 435
      Total value of shares repurchased:                        R187 382 715

      Total shares in issue before cancellation of
      repurchased shares:                                       206 913 435
      Total shares in issue after cancellation of
      Repurchased Share:                                        201 450 000
      Number of treasury shares (unchanged):                    1 000 000

      The shares which have been repurchased will be cancelled and delisted on or about Thursday,
      27 February 2020.


      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 their 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 R188 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 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.

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

25 February 2020

RAND MERCHANT BANK (A division of FirstRand Bank Limited)

Date: 25-02-2020 05:00:00
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