Ratio applicable to the scrip distribution
(Incorporated in the Republic of South Africa)
(Registration number: 1994/005004/06)
Share Code: DTC
("Datatec" or "the Company")
RATIO APPLICABLE TO THE SCRIP DISTRIBUTION
Shareholders of Datatec (“Shareholders”) are referred to the announcement regarding the Company’s
audited financial results for the year ended 28 February 2021 and declaration of the cash dividend with a
scrip distribution alternative released on the Stock Exchange News Service (“SENS”) of the JSE Limited (“JSE”)
on Tuesday, 25 May 2021, in terms of which the board of directors of the Company notified Shareholders that
it had resolved to declare a final cash dividend of 100 ZAR cents (“Cash Dividend”) per Datatec ordinary
share held on the Record Date, being Friday, 16 July 2021 (“Record Date”).
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 (“Scrip Distribution”
or "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
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 distributed to shareholders on Thursday,
3 June 2021 (“Circular”).
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, 16 July 2021) 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, 5 July 2021. The 30-day VWAP at close of business on Monday, 5 July 2021 was
2923.15933 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 3.42096 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, 14 July 2021, (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, 15 July 2021.Shareholders are
referred to paragraph 3.4.2 of the Circular in which it is stated that the Scrip Distribution Alternative and cash
paid for a fraction of a share will not be subject to Dividend Withholding Tax in terms of the Income Tax Act
58 of 1962.
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 / 2923.15933 ZAR cents
= 3.42096 new shares
(then apply the Rounding Provision described above)
= 3 Scrip Distribution shares in respect of the 100 ordinary shares held plus the applicable cash payment to
be determined as described above.
Tuesday, 6 July 2021
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 06-07-2021 10:15:00
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