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Datatec - Intention to list on AIM in London
DATATEC LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1994/005004/06)
ISIN: ZAE000017745
Share Code: DTC
("Datatec" or "the Group")
Intention to list on AIM in London
Datatec Limited, the international Information & Communications Technology
(ICT) group, currently capitalised at R4.6 billion (approximately US$600
million) on the JSE Limited (`JSE"), announces its intention to seek a
listing of its shares on AIM. Datatec has also published today a trading
update for the six months ended 31 August 2006.
The Group is seeking shareholder approval to issue up to 10%. of its issued
share capital (as enlarged by such issue) to institutional investors by way
of a placing, which would raise up to US$60 million at the current share
price. Datatec has already received indications of interest amounting to
approximately US$20 million from cornerstone investors. The proceeds of the
issue would be used to facilitate the continued development of the Group"s
international businesses.
Datatec is registered in South Africa and listed on the JSE in 1994. With
operations in more than 20 countries, more than 98% of the Group"s revenue
is generated outside South Africa, mostly in the US and UK. The Group is
domiciled in South Africa.
In the year ended 28 February 2006, the Group reported an 18% increase in
revenues from ongoing activities to US$2.98 billion (2005: US$2.52
billion), EBITDA increased to US$85.2 million (2005: US$28.4 million),
operating profit increased to US$69.0 million (2005: US$10.9 million) and
headline earnings per share to 26.92 cents (2005: 3.59 cents).
Datatec is an industry intermediary focused on the supply of advanced ICT
products and services into the higher growth segments of the global ICT
market. It operates at three key points in the ICT supply chain, through
three principal operating divisions:
* Westcon is a global value-added distributor of advanced networking and
communications convergence products from vendors such as Cisco,
Nortel, Avaya, Checkpoint and Nokia. Westcon, headquartered in New
York, has operations in 16 countries and adds value to its
distribution activities by providing services such as technical
expertise, training and sales support.
Westcon provides solutions that include the design and configuration
of convergence networks, network extension such as video conferencing,
network storage and unified messaging and network security to over
7,900 customers worldwide, which include resellers, systems
integrators and service providers. In the year ended 28 February 2006,
Westcon reported revenues of US$2.28 billion (2005: US$2.05 billion)
and EBITDA of US$66.6 million (2005: US$25.0 million).
* Logicalis is an international provider of integrated ICT solutions,
delivering secure, converged computing and communications
infrastructure solutions and services to more than 5,000 corporate and
public sector customers, mostly in the US and UK. Logicalis is
headquartered in Slough, UK and employs approximately 1,000 people
across its operations in nine countries. In the year ended 28 February
2006, Logicalis reported revenues of US$545.6 million (2005: US$340.9
million) and EBITDA of US$16.7 million (2005: US$9.6 million).
* Analysys Mason is an ICT consultancy headquartered in Manchester, UK,
with approximately 250 employees and operations in seven countries.
Analysys Mason provides strategy, management and technology
consultancy services to the telecommunications and media sector, as
well as research and implementation services. In the year ended 28
February 2006, Analysys Mason reported revenues of US$59.8 million
(2005: US$52.1 million) and EBITDA of US$6.2 million (2005: US$3.3
million).
The extensive ICT services provided by Datatec"s operating divisions in the
last financial year contributed over US$178 million of Group revenues and
over 17% of Group gross profit.
The listing in London will provide the Group with greater access to capital
and support the further development of the business through continued focus
on sectors of the ICT market in which the Group operates, targeted
geographic expansion, investment in higher margin services activities and
selective value-enhancing acquisitions.
Jens Montanana, Chief Executive of Datatec, comments:
"A London listing is the next logical step for us as an international
business. It will give us greater access to capital to support our strategy
of organic growth and targeted acquisitions, providing us with a more
internationally accepted acquisition currency and enable the Group to
attract a broader range of institutional investors.
"We are excited at the prospect of a listing in London where we will be one
of the larger technology-sector stocks. With three independent business
streams, both sector and geographic diversity, and a leading vendor
portfolio, we believe that Datatec represents a multi-play opportunity for
investors seeking exposure to the high growth networking, security and
convergence technologies."
Dresdner Kleinwort is advising Datatec on its proposed listing on AIM and
issue of new shares is subject to the approval of the Company"s
shareholders and a circular seeking the necessary approval has been posted
to shareholders.
Enquiries:
Datatec Limited
(www.datatec.co.za)
Jens Montanana, Group Chief + 44 (0) 1753 797 118
Executive
David Pfaff, Group Finance + 44 (0) 1753 797 118
Director
Wilna de Villiers, Group + 27 (0) 11 233 1013
Marketing Manager
Dresdner Kleinwort
Paul van Issum, Equity Capital + 44 (0) 20 7623 8000
Markets
Simon Russell/James Rudd, Global
Banking
Metier
Paul Botha/ Greg von Holdt, + 27 (0) 11 268 4000
Metier Advisory
College Hill (UK press)
Adrian Duffield/Corinna Dorward + 44 (0) 20 7457 2020
Fleishman-Hillard (SA press)
Michelle de Pons/Lucien Vallun + 27 (0) 11 548 2000
This announcement is not for publication, release or distribution, directly
or indirectly, in or into the United States of America, Canada, Australia,
the Republic of Ireland, or Japan, or their respective territories or
possessions.
The contents of this announcement, which has been issued by the Company and
is the sole responsibility of the Company, have been approved by Dresdner
Kleinwort Limited solely for the purposes of section 21 of the Financial
Services and Markets Act 2000 ("FSMA"). Dresdner Kleinwort Limited, which
is authorised and regulated by the FSA, is acting for the Company and for
no-one else, in connection with the contents of this document and will not
be responsible to anyone other than the Company for providing the
protections afforded to customers of Dresdner Kleinwort Limited or for
affording advice in relation to the contents of this announcement or any
matters referred to herein.
This announcement does not constitute or form part of an offer for sale or
subscription of, or any solicitation of an offer to purchase or subscribe
for, securities and any purchase of or subscription or application for
shares in the proposed placing of an as yet undetermined number of ordinary
shares ("Placing") should only be made on the basis of information
contained in the admission document to be issued in connection with the
Placing. This announcement does not and the admission document will not
constitute and the Company is not making an offer of transferable
securities to the public within the meaning of sections 85 and 102B of
FSMA. The price and value of, and income from, shares may go down as well
as up. Persons needing advice should consult an independent professional
adviser.
The shares to be placed in the Placing have not been, and will not be,
registered under the US Securities Act of 1933 or under the US Securities
Exchange Act of 1934, as amended, or under the securities legislation of
any state of the United States of America, nor under the relevant
securities laws of Canada, Australia, the Republic of Ireland, the Republic
of South Africa or Japan, and may not be offered or sold in or into the
United States of America. There will be no offering or placing of shares
in or into the United States of America, Canada, Australia, the Republic of
Ireland, the Republic of South Africa or Japan or in any country, territory
or possession where to do so may contravene local securities laws or
regulations. This announcement (or any part of it) is not to be reproduced,
distributed, passed on, or the contents otherwise divulged, directly or
indirectly, in or into the United States, Canada, Australia, the Republic
of Ireland, or Japan, in any country, territory or possession where to do
so may contravene local securities laws or regulations.
Information contained in this announcement may include `forward looking
statements". All statements other than statements of historical facts
included herein, including, without limitation, those regarding the Group"s
financial position, business strategy, plans and objectives of management
for future operations (including development plans and objectives relating
to the Group"s business) are forward-looking statements.
Such forward-looking statements are based on a number of assumptions
regarding the Group"s present and future business strategies and the
environment in which the Group expects to operate in the future. These
forward-looking statements speak only as to the date of this announcement
and cannot be relied upon as a guide to future performance. The Company
expressly disclaims any obligation or undertaking to disseminate any
updates or revisions to any forward-looking statements contained in this
announcement to reflect any changes in its expectations with regard thereto
or any change in events, conditions or circumstances on which any statement
is based.
Sandton
2 October 2006
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 02/10/2006 08:00:06 AM Produced by the JSE SENS Department
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