DATATEC LIMITED - Ratio applicable to the scrip distribution

Ratio applicable to the scrip distribution

Datatec Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1994/005004/06)
ISIN: ZAE000017745
Share Code: DTC
("Datatec" or "the Company")

RATIO APPLICABLE TO THE SCRIP DISTRIBUTION

Shareholders are referred to the announcement released on the Stock Exchange
News Service (“SENS”) on Wednesday, 3 July 2019 in which they were advised of
the Company’s declaration of a gross Cash Dividend of 100 ZAR cents per ordinary
Datatec share held on the Record Date, being Friday 26 July 2019 (“Cash
Dividend”).

Shareholders will, however, be entitled to elect to receive a scrip distribution
of new, fully-paid Datatec ordinary shares in proportion to their ordinary
shareholding in Datatec on the Record Date, being Friday, 26 July 2019 (“Scrip
Distribution Alternative”), instead of the Cash Dividend. Shareholders are not
required to pay for the Datatec ordinary shares to which they are entitled in
terms of an election to receive the Scrip Distribution Alternative.

A circular setting out the terms of the Cash Dividend and the Scrip Distribution
Alternative, including a Form of Election to elect to receive the Scrip
Distribution Alternative, was posted to shareholders on Wednesday, 3 July 2019.

The number of Scrip Distribution shares to which each shareholder will become
entitled pursuant to the Scrip Distribution Alternative (to the extent that such
shareholders elect to receive the Scrip Distribution shares) will be determined
by reference to such shareholder’s ordinary shareholding in Datatec (at the
close of business on the Record Date, being Friday, 26 July 2019) in relation to
the ratio that 100 ZAR cents bears to the volume weighted average price (“VWAP”)
of a Datatec ordinary share traded on the JSE during the 30-day trading period
ended on Monday, 15 July 2019. The 30-day VWAP at close of business on Monday,
15 July 2019 was 3568 ZAR cents per share. The ratio of Scrip Distribution
shares to which each shareholder will become entitled pursuant to the Scrip
Distribution Alternative (to the extent that such shareholders elect to receive
the Scrip Distribution shares) is therefore 2.80269 Scrip Distribution shares
for every 100 ordinary shares held on the Record Date.

Where a shareholder’s entitlement to new Datatec ordinary shares calculated in
accordance with the above formula gives rise to a fraction of a new ordinary
share, such fraction of a new ordinary share will be rounded down to the nearest
whole number, resulting in allocations of whole ordinary shares and a cash
payment for the fraction (“Rounding Provision”).

The applicable cash payment will be determined with reference to the VWAP of a
Datatec ordinary share traded on the JSE on Wednesday, 24 July 2019, (being the
day on which an ordinary Datatec share begins trading ‘ex’ the entitlement to
receive the Cash Dividend or the Scrip Distribution Alternative), discounted by
10%. The applicable cash payment will be announced on SENS on Thursday, 25 July
2019. In this regard, shareholders are referred to paragraph 3.2 of the circular
published on Wednesday, 3 July 2019 in which it is stated that the fractional
entitlement payment will be subject to 20% Dividend Withholding Tax (“DWT”).
Shareholders are advised that, pursuant to Issue 6 of the Tax Guide for Share
Owners issued by the South African Revenue Service in November 2018, the
applicable cash payment is no longer subject to 20% DWT.

Example of Scrip Distribution entitlement:
This example assumes that a shareholder holds 100 Datatec ordinary shares at the
close of business on the Record Date and elects to receive the Scrip
Distribution shares in respect of all their shareholding.

New ordinary share entitlement =
100 x 100 ZAR cents
___________________
3568 ZAR cents
= 2.80269 new shares
(then apply the Rounding Provision described above)
= 2 Scrip Distribution shares in respect of the 100 ordinary shares held plus
the applicable cash payment to be determined as described above.

Tuesday, 16 July 2019

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

Date: 16/07/2019 09:30:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.