Picture: ISTOCK
Picture: ISTOCK

Technology company Datatec said on Monday it intended to distribute about R5bn to shareholders as a special dividend after selling some its assets.

The company agreed earlier in 2017 to sell the whole of Westcon Americas and a 10% equity interest in Westcon International to Synnex for $830m. Separately, it also sold its Dutch business unit for $42m.

The market reaction was relatively muted, suggesting that the good news could be discounted after hints of a dividend bonanza earlier in the year.

The performance of the underlying operations was, however, weaker in the six months to end-August, with the company attributing it to the roll-out of software across some its operations.

Underlying earnings per share (EPS) dropped to 1.4 US cents, from 12.5c a year ago. This was off the revenue of $2.99bn, which was down from $3.04bn a year ago.

The company operates in more than 50 countries across North America, Latin America, Europe, Africa, Middle East and Asia-Pacific, offering technology, distribution, integration and consulting sectors of the information and communications technology (ICT) market.

The share price was up 1.19% to R63.95 in early trade on the JSE, giving the company a market value of R13.5bn

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