TRADING UPDATE
Datatec shares soar after news of Westcon sale
Shares in Datatec soared on Friday after the global technology firm told the market it would sell a majority stake in its Westcon-Comstor subsidiary for more than $800m. At the same time, Datatec warned that its underlying earnings for the year to end February would be more than 50% below the $0.32 per share recorded in the 2015 financial year because of a poor performance at Westcon-Comstor. The update to the market sent Datatec shares 7% higher, to close at R57. Commenting on the trading statement, Datatec CEO Jens Montanana blamed the expected decline in earnings on a "worse-than-expected result" at Westcon-Comstor. The trading update said there was a decline in financial performance in the Europe, Middle East and Africa region in the fourth quarter. Westcon-Comstor "experienced disruption to the business as a result of the final stages of SAP implementation" in the region. Chief investment officer at Falcon Crest Asset Managers Farai Mapfinya said Datatec’s full-year guidance wa...
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