DATATEC LIMITED - General repurchase of shares announcement

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")

GENERAL REPURCHASE OF SHARES ANNOUNCEMENT

1.    INTRODUCTION

      The board of directors of the Company ("Board") hereby, in term of paragraph 11.27 of the
      Listings Requirements of the JSE Ltd ("JSE"), advises shareholders that the Company, in
      accordance with the general authority granted by shareholders at the Company’s annual
      general meeting held on Thursday, 14 September 2017 ("General Authority"), has
      cumulatively repurchased from shareholders, through the order book operated by the JSE,
      and in a series of unrelated transactions without any prior understanding or arrangement
      between the Company and these shareholders, 11 919 739 ordinary shares ("Shares") in
      the aggregate, representing 4.66% of the Company's issued share capital (excluding
      treasury Shares) ("Repurchase").

      The Company reached the 3% repurchase threshold, provided for in the Listings
      Requirements of the JSE, on Monday, 22 January 2018, hence requiring the publication of
      this announcement.


2.    DETAILS OF THE REPURCHASE

      Details of the Repurchase are as follows:

      Dates of Repurchase:                                        Friday, 12 January 2018
                                                                  to Monday, 22 January 2018
      Highest repurchase price per Share:                         R33.50
      Lowest repurchase price per Share:                          R30.99
      Number of Shares repurchased:                               11 919 739
      Total value of Shares repurchased:                          R393 239 618

      The number of Shares which may still be
      repurchased by the Company in terms of the
      General Authority:                                          30 473 785
      The percentage of Shares which may still be
      repurchased by the Company in terms of the
      General Authority:                                          14.38%
      Total Shares in issue:                                      255 737 717
      Number of treasury shares (unchanged):                      17 941

      The shares which have been repurchased will be cancelled and delisted before 28 February
      2018.


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 R394.8 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 will be foregone on the cash resources used to acquire the
     Repurchase Shares.


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 and was not effected in terms a
     repurchase programme. Accordingly, the Company has complied with paragraph 5.72 (a) of
     the Listings Requirements of the JSE.


Johannesburg
23 January 2018

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

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