General repurchase of shares voluntary 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 VOLUNTARY ANNOUNCEMENT 1. INTRODUCTION Shareholders are advised that, in accordance with the general authority granted by shareholders at the Company’s general meeting held on Wednesday, 26 June 2019 (“General Authority”), Datatec has further repurchased 2 353 558 ordinary shares (“Shares”) in aggregate, representing 1.10% of the Company's issued share capital (excluding treasury Shares) ("Repurchase"). Following the Repurchase, the extent of the General Authority outstanding is 6 656 782 Shares (representing 3.11% of the total issued share capital of the Company at the time the General Authority was granted) but this will be unused as the General Authority expires today. 2. DETAILS OF THE REPURCHASE Details of the Repurchase are as follows: Dates of Repurchase: Wednesday, 24 July 2019 to Wednesday, 28 August 2019 Highest repurchase price per Share: R34.10 Lowest repurchase price per Share: R28.00 Number of Shares repurchased: 2 353 558 Total value of Shares repurchased: R78 387 977 Total Shares in issue before cancellation of repurchased shares: 214 353 558 Total Shares in issue after cancellation of repurchased shares: 212 000 000 Number of treasury shares (unchanged): 668 217 The Shares which have been repurchased will be cancelled and delisted on or about 2 September 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 R78.7 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 29 August 2019 Sponsor RAND MERCHANT BANK (A division of FirstRand Bank Limited) Date: 29/08/2019 11:00:00 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.