Datatec Limited CASH FRACTION APPLICABLE TO THE SCRIP DISTRIBUTION (8854E)

TIDMDTC

RNS Number : 8854E

Datatec Limited

21 July 2016

21 July 2016

Datatec Limited

("Datatec" or "the Company")

CASH FRACTION APPLICABLE TO THE SCRIP DISTRIBUTION

Shareholders are referred to the Company's audited financial results for the year ended 29 February 2016, released on the Regulatory News Service ("RNS") on 11 May 2016, in which they were advised that Datatec's board of directors had resolved to declare a final Scrip Distribution of ordinary Datatec shares, with the alternative to elect to receive a Cash Dividend of 136 ZAR cents per ordinary Datatec share.

The ratio applicable to the Scrip Distribution entitlement was announced on RNS on 12 July 2016, being 3.08390 Scrip Distribution shares for every 100 ordinary Datatec shares held on the Record Date, being Friday, 22 July 2016.

If the application of this ratio gives rise to a fraction of an ordinary Datatec share, such fraction of a new ordinary Datatec share will be rounded down to the nearest whole number, resulting in allocations of whole ordinary Datatec shares and a cash payment for the fraction ("Rounding Provision").

In accordance with the requirements of the JSE Limited, the cash payment has been determined with reference to the volume weighted average price of an ordinary Datatec share traded on the JSE on Wednesday, 20 July 2016 (being the day on which an ordinary Datatec share began trading 'ex' the entitlement to receive the Scrip Distribution or Cash Dividend alternative), discounted by 10%.

Shareholders are accordingly advised that the basis applicable in determining the cash payment for the fractional entitlement is 3932.1 ZAR cents.

Example of fractional entitlement:

This example assumes that a Shareholder holds 100 ordinary shares at the close of business on the Record Date and does not elect to receive the Cash Dividend in respect of all or part of their shareholding.

New ordinary share entitlement = 100 x 3.08390%

= 3.0839 new ordinary shares. The Rounding Provision described above is then applied and the shareholder will receive:

3 Scrip Distribution shares in respect of the 100 ordinary shares held; and a cash payment for the fractional entitlement based on the 3932.1 ZAR cents noted above of 0.0839 x 3932.1 = 330 ZAR cents.

This fractional entitlement payment will be subject to 15% dividend withholding tax, resulting in a net cash payment based on 3342.285 ZAR cents: 0.0839 x 3342.285 = 280 ZAR cents.

Enquiries:

 
 Datatec Limited (www.datatec.com) 
 Jens Montanana - Chief Executive        +44 (0) 1753 
  Officer                                     797 118 
 Ivan Dittrich - Chief Financial       [phone] 
  Officer                                        3301 
 Wilna de Villiers - Group             [phone] 
  Investor Relations Manager                     1013 
 
   Jefferies International Limited - Nominated 
   Advisor and Broker 
                                      [phone] 
 Nick Adams/Alex Collins                         8000 
 
   finnCap - Broker 
                                      [phone] 
 Stuart Andrews                                  0500 
 
   Instinctif Partners 
 Adrian Duffield/Chantal Woolcock     [phone] 
  (UK)                                           2020 
 Frederic Cornet/Pietman Roos          [phone] 
  (SA)                                           3030 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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July 21, 2016 08:15 ET (12:15 GMT)