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DATATEC LIMITED - General repurchase of shares announcement

Release Date: 04/03/2019 08:00
Code(s): DTC     PDF:  
Wrap Text
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

      Shareholders are advised that, in accordance with the general authority granted by
      shareholders at the Company’s general meeting held on Tuesday, 15 January 2019
      (“General Authority”), Datatec has cumulatively repurchased 6 900 000 ordinary shares
      (“Shares”) in the aggregate, representing 3.05% of the Company's issued share capital
      (excluding treasury Shares) ("Repurchase"). Following the Repurchase, the extent of the
      General Authority outstanding is 4,404,284 Shares, representing 1.95% of the total issued
      share capital of the Company, at the time the General Authority was granted.

      The Company reached the 3% repurchase threshold, provided for in the Listings
      Requirements of the JSE Limited, on Thursday, 28 February 2019, requiring the publication
      of this announcement.


2.    DETAILS OF THE REPURCHASE

      Details of the Repurchase are as follows:

      Dates of Repurchase:                                        Wednesday, 16 January 2018
                                                                  to Thursday, 28 February 2019
      Highest repurchase price per Share:                         R31.50
      Lowest repurchase price per Share:                          R28.59
      Number of Shares repurchased:                               6 900 000
      Total value of Shares repurchased:                          R200 859 572

      Total Shares in issue before the Repurchase:                226 100 000
      Total Shares in issue after cancellation of
      repurchased shares:                                         219 200 000
      Number of treasury shares (unchanged):                      14 351

      The Shares which have been repurchased will be cancelled and delisted on or about 5 March
      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 R201.7 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. The
     Repurchase was not effected during any prohibited period.

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


Johannesburg
4 March 2019

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

Date: 04/03/2019 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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