TIDMDTC

RNS Number : 6549P

Datatec Limited

01 September 2017

1 September 2017

Datatec Limited

Completion of Westcon-Comstor SYNNEX transaction for up to $830m in cash

Datatec Limited (JSE/AIM: DTC, "Datatec" or "the Group" ), the international Information and Communications Technology (ICT) group, has completed the sale of its Westcon-Comstor business in North America and Latin America ("Westcon Americas") and of 10% of the remaining part of Westcon ("Westcon International") to SYNNEX Corporation (NYSE: SNX) ("SYNNEX"), together "the Transaction".

The proceeds of the Transaction comprise US$630 million in cash on completion and up to US$200 million payable as a cash earn-out, subject to Westcon Americas meeting certain agreed gross profit performance targets.

The maximum consideration of $830 million equates to an equity valuation of the total Westcon-Comstor division of $1.1 billion.

The Board will be reviewing options for the use and distribution of the cash proceeds received on closing of the Transaction.

As previously communicated to shareholders, the Board intends to retain US$130 million for various operational and working capital and expansion funding requirements. The Board will consider returning the majority of the remaining US$500 million to shareholders by way of share repurchases and / or a specific dividend, but in the meantime the proceeds will be retained in US Dollars.

The Board has previously communicated that any cash payments received on the earn-out will be returned to shareholders.

As stated on 6 June 2017 when the Transaction was announced, it provides a unique opportunity for Westcon International to partner with a leading global distribution business and enables it to complete its transformation process and improve operating efficiency, so enhancing its value in the medium term.

Datatec shareholders voted to approve the Transaction at the general meeting held on 30 August 2017 and all other conditions precedent to completion of the Transaction have been satisfied.

Jens Montanana, Datatec CEO, said:

"This transaction crystallises excellent value for our shareholders - we will revert to shareholders with our plans for the use and distribution of the cash in due course.

"The strategic partnership between Westcon International and SYNNEX will provide significant growth opportunities for both businesses, while working together to serve vendors and customers globally."

Enquiries:

 
 Datatec Limited (www.datatec.co.za) 
 Jens Montanana, Chief Executive 
  Officer 
  Ivan Dittrich, Chief Financial                         +44 (0) 1753 797118 
  Officer                                                +27 (0) 11 233 3301 
 Wilna de Villiers, Group 
  Investor Relations                                     +27 (0) 11 233 1013 
 
 Jefferies International Limited - Nominated Adviser 
  and Broker 
 Nick Adams/Simon Hardy                                 +44 (0) 20 7029 8000 
 
 Instinctif Partners 
 Frederic Cornet/Keagile Makgoba 
  (SA)                                                   +27 (0) 11 447 3030 
 Adrian Duffield/Chantal Woolcock 
  (UK)                                                  +44 (0) 20 7457 2020

This information is provided by RNS

The company news service from the London Stock Exchange

END

ACQSSMFMFFWSELU

(END) Dow Jones Newswires

September 01, 2017 13:00 ET (17:00 GMT)

Datatec (LSE:DTC)
Gráfico Histórico do Ativo
De Nov 2024 até Dez 2024 Click aqui para mais gráficos Datatec.
Datatec (LSE:DTC)
Gráfico Histórico do Ativo
De Dez 2023 até Dez 2024 Click aqui para mais gráficos Datatec.