Datatec investors set for big bonanza
The share spiked more than 8% on news that the Westcon-Comstor Synnex transaction had been completed
The R10.8bn cash sale of half of Datatec’s Westcon-Comstor business, which sent the stock 8% higher on Monday, will not be the final transaction in the group’s value-creation drive, says CEO Jens Montanana. Datatec was considering other transactions — on the buy side and on the sell side — to maximise shareholder value, Montanana said on Monday after the completion of the $830m sale of the Westcon-Comstor business in North America and Latin America to US-based Synnex Corporation. Synnex also acquired 10% of the remaining part of Westcon International. Datatec’s share price was 8.25% higher at R60.90 at the JSE’s close on Monday, nearing a 12-month high, as shareholders eyed a substantial dividend. Shareholders are likely to receive $500m (R6.48bn) of the $630m upfront cash portion of the deal by way of share repurchases, or as a special dividend. "If Datatec were to pay out the full $500m tomorrow it would amount to a R30-a-share dividend," said Peter Takaendesa, a portfolio manager...
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