Datatec CEO Jens Montanana. (Image supplied)
Datatec has paid shareholders a gross special cash dividend of R2.28 billion, while issuing 94.3 million new ordinary shares to investors who opted for shares instead of cash.
In a statement yesterday, the JSE-listed technology group said 94 324 733 new Datatec ordinary shares were issued on 19 October under its scrip distribution alternative, which allowed shareholders to receive additional shares instead of the special cash dividend.
The distribution forms part of Datatec’s plan, announced in August, to return R7.05 billion, equivalent to approximately $435 million, to shareholders.
Shareholders were offered a special cash dividend of 2 900 cents per ordinary share, with the option to receive 57.28241 new shares for every 100 shares held as at the record date of 16 October.
According to the company’s latest announcement, shareholders holding 78 585 515 ordinary shares did not elect to receive the scrip distribution and will instead receive the cash dividend.
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This resulted in a gross cash payout of R2.28 billion, funded from the company’s distributable retained profits. The dividend amounts to R29 per share, or R23.20 per share after applicable dividend withholding tax.
The remaining portion of the planned shareholder return was allocated through the issue of new shares. Datatec says the scrip distribution resulted in the capitalisation of R4.78 billion in distributable retained profits.
The company confirmed that cash dividend payments were made on 19 October, with the relevant broker and Central Securities Depository Participant accounts credited.
No share certificates were dispatched to certificated shareholders who received the scrip distribution.
Datatec also disclosed provisions relating to share elections by its senior executives. Chief executive Jens Montanana is required, under the terms of a facility agreement linked to the transaction, to elect to receive shares for approximately 90% of his shareholding, to the fullest extent permitted by law.
Shares held in escrow for Montanana, chief financial officer Ivan Dittrich and company secretary Simon Morris under the Deferred Bonus Warrants scheme are also required to be taken up through the scrip distribution, in accordance with the scheme’s rules.
The three executives may also elect to receive shares instead of cash for all or most of their remaining Datatec shareholdings.
The company says details of the shares issued to directors and the company secretary under the distribution will be announced on 21 October.