Cash payment applicable to the scrip distribution
(Incorporated in the Republic of South Africa)
(Registration number: 1994/005004/06)
Share Code: DTC
(âDatatecâ or âthe Companyâ)
CASH PAYMENT APPLICABLE TO THE SCRIP DISTRIBUTION
Datatec shareholders (âShareholdersâ) are referred to the announcement regarding the
Companyâs interim financial results for the 6-month period ended 31 August 2021 and declaration
of a special cash dividend with a scrip distribution alternative released on the Stock Exchange
News Service (âSENSâ) of the JSE Limited (âJSEâ) on Thursday, 28 October 2021, in terms of
which the board of directors of the Company notified Shareholders that it had resolved to return
an amount of approximately US$70 million to Shareholders by declaring a special cash dividend
of 512 ZAR cents (âSpecial Cash Dividendâ) per Datatec ordinary share (âDatatec Shareâ) held
on the record date, being Friday, 26 November 2021 (âRecord Dateâ). Shareholders were
advised that they would be entitled to elect to receive a scrip distribution of new, fully paid
Datatec Shares in proportion to their ordinary shareholding in Datatec on the Record Date instead
of the Special Cash Dividend (âScrip Distributionâ or âScrip Distribution Alternativeâ).
Shareholders will be entitled to receive the Special Cash Dividend of 512 ZAR cents per ordinary
Datatec Share in respect of their shareholding as at the close of trading on the JSE on the
Record Date, being Friday, 26 November 2021, in proportion to their ordinary shareholding in
Datatec and to the extent that such Shareholders have not elected to receive the Scrip
Distribution Alternative in respect of all or a part of their shareholding.
Shareholders will, however, be entitled to elect to receive a Scrip Distribution of new, fully paid
Datatec Shares in respect of their shareholding in Datatec as at the Record Date, in respect of all
or part of their ordinary shareholding, instead of the Special Cash Dividend.
The ratio applicable to the Scrip Distribution entitlement was announced on SENS on Tuesday,
16 November 2021, being 12.90431 Scrip Distribution shares for every 100 Datatec Shares held
on the Record Date. If the application of this ratio 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 (âRounding
In accordance with the JSE listings requirements, the cash payment for the fractional entitlement
has been determined with reference to the volume weighted average price (âVWAPâ) of a Datatec
Share traded on the JSE on Wednesday, 24 November 2021 (being the day on which Datatec
Shares began trading âexâ the entitlement to receive the Special Cash Dividend or the Scrip
Distribution Alternative), discounted by 10%.
Shareholders are accordingly advised that the basis applicable in determining the cash payment
for the fractional entitlement is 3397.5 ZAR cents (the VWAP of Datatec Shares traded on the
JSE on Wednesday, 24 November 2021 of 3775 ZAR cents, discounted by 10%).
Example of fractional entitlement:
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 Distribution shares in respect of all their
New ordinary share entitlement =
100 x 512 ZAR cents / 3967.66756 ZAR cents
= 12.90431 Scrip Distribution Shares
The Rounding Provision described above is then applied and the Shareholder will receive:
12 Scrip Distribution shares in respect of the 100 Shares held and a cash payment of 3072.39323
ZAR cents for the fractional entitlement (calculated as follows 0.90431 x 3397.5 =
3072.39323 ZAR cents).
This fractional entitlement payment will not be subject to Dividend Withholding Tax in terms of the
Income Tax Act 58 of 1962.
25 November 2021
Rand Merchant Bank (A division of FirstRand Bank Limited)
Date: 25-11-2021 10:59:00
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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.