Datatec: Cash payment applicable to the distribution of scripts

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Datatec Limited

(Incorporated in the Republic of South Africa) (Registration Number: 1994/005004/06) ISIN: ZAE000017745

Sharing Code: DTC

(“Datatech” or the Company“)

CASH PAYMENT APPLICABLE TO SCRIP DISTRIBUTION

shareholders of Datatec (“Shareholders“) are referred to the announcement regarding the audited financial results of the Company for the financial year ended February 28, 2022 and the declaration of a cash dividend with an alternative distribution of securities published on the Stock Exchange News Service (“MEANING“) of JSE Limited (“JSE“) on Tuesday 24 May 2022, pursuant to which the Board of Directors of the Company notified Shareholders that it had resolved to declare a final gross cash dividend of ZAR 111 cents (” Cash dividend“) per Datatec ordinary share (“Data sharing“) held on the Record Date, being Friday, July 15, 2022 (“Registration Date“). Shareholders have been informed that they would have the right to elect to receive a stock distribution of new fully paid Datatec shares pro rata to their ordinary interest in Datatec on the record date in lieu of the cash dividend (“Distribution of certificates” Where “Certificate distribution alternative“).

Shareholders will be entitled to receive the cash dividend of ZAR 111 cents per Datatec share in respect of their holding at the close of trading on the JSE on the record date, being Friday July 15, 2022, pro rata to their ordinary shareholding in Datatec and to the extent that such Shareholders have not elected to receive the Scrips Distribution Alternative for all or part of their shareholding.

Shareholders will, however, be entitled to elect to receive a Distribution in fully paid New Datatec Share Certificates in respect of their interest in Datatec on the Record Date, for all or part of their ordinary shareholding, instead of the Cash Dividend .

The ratio applicable to the Scrips Distribution right was announced on SENS on Tuesday July 5, 2022, being 3.01824 Scrips Distribution shares for 100 Datatec Shares held on the Record Date. If the application of this ratio gives rise to a fraction of a new ordinary share, this fraction of a new ordinary share will be rounded down to the nearest whole number, giving rise to allocations of whole ordinary shares and payment in numeral of the fraction (“Rounding layout“).

In accordance with the terms of listing of the JSE Limited, the cash payment for the fractional right has been determined by reference to the volume weighted average price (“VWAP“) of a Datatec Share traded on the JSE on Wednesday July 13, 2022 (being the day the Datatec Shares commenced trading ‘ex’ the right to receive the Cash Dividend or Alternative Scrip Distribution), discounted by 10%.

Shareholders are therefore advised that the applicable basis for determining the cash payment of the fractional right is ZAR 3769.2 cents (the VWAP of Datatec Shares traded on the JSE on Wednesday July 13, 2022 of ZAR 4188 cents, discounted by 10%) .

Example of split duty:

This example assumes that a Shareholder holds 100 Datatec Shares at the close of business on the Record Date and elects to receive the Scrip Distributing Shares for his entire holding.

New right to ordinary share =

100 x 111 ZAR cents / 3677.64209 ZAR cents

= 3.01824 Scrip Distribution Shares

The Rounding Provision described above is then applied and the Shareholder will receive:

3 Scrip Distribution shares for every 100 Shares held and a cash payment of 68.75021 ZAR cents for the fractional right (calculated as 0.01824 x 3769.2 = 68.75021 ZAR cents).

Such payment of fractional rights will not be subject to dividend withholding tax under Income Tax Act 58 of 1962.

Johannesburg

July 14, 2022

Sponsor

Rand Merchant Bank (a division of FirstRand Bank Limited)

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