DTC
DTC
Datatec first day of unconditional dealings on AIM
Datatec Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1994/005004/06)
ISIN: ZAE000017745
Share Code: DTC
("Datatec")
20 October 2006
Datatec first day of unconditional dealings on AIM
Datatec Limited ("Datatec" or "the Group", JSE and AIM: DTC), the international
Information & Communications Technology (ICT) group, announces that
unconditional dealings in its ordinary shares will start at 8.00am today on AIM
in London.
Placing statistics
Placing price per ordinary share 192p
Total number of new ordinary shares placed 7,234,673
Amount raised by institutional placing, before GBP13.9
expenses million
Number of ordinary shares in issue on admission 154,416,507
Dresdner Kleinwort is acting as Global Co-ordinator and as Nominated Adviser and
Broker to Datatec. Metier is acting as Datatec"s adviser on the South African
aspects of the transaction.
Enquiries:
Datatec Limited
(www.datatec.co.za)
Jens Montanana, Group Chief +44 (0) 1753 797 118
Executive
David Pfaff, Group Finance
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
Background on Datatec
Datatec is a networking, IT and services company focussed on the supply of
advanced ICT technology and the delivery of professional services into the
higher growth segments of the global market.
In the year ended 28 February 2006, the Group reported an 18% increase in
revenues from ongoing activities to $2.98 billion (2005: $2.52 billion), EBITDA
increased to $85.2 million (2005: $28.4 million), operating profit increased to
$69.0 million (2005: $10.9 million) and headline earnings per share to 26.91
cents (2005: 3.59 cents).
The Group expects to publish its results for the six months ended 31 August 2006
on 1 November 2006.
Datatec has a number of key strengths that provide it with a competitive
advantage. These include:
- Datatec operates three focussed ICT supply chain businesses which
gives it multiple points of access to the growing ICT market as well
as a reduced risk profile in the event of a market downturn.
- The Group has a broad international presence, with operations in over
20 countries. Of the Group"s $3 billion revenue generated in FY06,
more than 50% was generated from North America, 36% from the UK and
Europe and 6% from Asia Pacific.
- The Group is principally focussed on providing a higher value offering
to mid-market and large enterprise customers (both commercial and
public sector), which the Directors believe represents the most
attractive target market for the Group"s businesses. The Group
provides networking, security and convergence products and services
and the growth rates for such products have been, and are expected by
the Directors to continue to be, significantly higher than for the
general ICT market.
- The Group has long established, strategic relationships with all of
the leading product vendors, such as Cisco, Nortel, Avaya, IBM, HP,
Nokia and Checkpoint, and is a key partner for most of these vendors
in each of the Group"s key geographic markets.
- One of the key elements of the Group"s success has been the
development of new business lines and geographical markets, in order
to broaden the Group"s portfolio of business activities and to
maintain the Group"s focus on higher growth and higher margin
activities.
- Datatec has demonstrated a successful track record of organic and
acquisition-led growth. The Group has grown revenues by 44% and has
completed seven acquisitions over the period from FY04 to FY06, all of
which have been successfully integrated into the operating businesses.
- Datatec has delivered improved financial performance and productivity
since the ICT market downturn. Revenue and gross profit by employee
increased by 24% and 20% respectively, from the start of FY04 to FY06.
The Group has also made significant improvements in its working
capital management over the last three years, with net working capital
remaining at approximately $197 million at the FY06 year end (FY04:
$194 million) despite a 27% increase in revenues since FY04.
- The Group has a strong operational management team, with considerable
experience in the international ICT industry and a track record of
delivering organic and acquisition-led growth.
Group Strategy
The Group"s strategy is to deliver long-term, sustainable, above average returns
to shareholders through the development of its three principal operating
divisions. The Group acts as a value-added intermediary, operating at three key
points in the ICT supply chain. These divisions are run as pure-play standalone
businesses, which, the Directors believe, enables them to deliver enhanced
operational and financial performance as well as to react faster to technology
change.
The key elements of the Group"s strategy include continued focus on the higher
value, faster growing sectors of the ICT market; targeted geographic expansion;
investment in higher margin services activities; and value-enhancing
acquisitions.
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 Financial Services Authority, 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 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.
Date: 20/10/2006 08:00:21 AM Produced by the JSE SENS Department
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