Datatec to return R5bn to investors as special dividend
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