Datatec takes ownership of Westcon Africa

Datatec, the information and communications technology (ICT) group, says that its 100% subsidiary, Westcon Group, has acquired the 33.1% interest in its African subsidiaries (Westcon Africa).

This transaction does not apply to Westcon SA, which remains under the ownership of Datatec (74%) and its BEE partner, the Mineworkers Investment Corporation (26%).

The rationale for the Transaction is to achieve full ownership of the African businesses in the Westcon Group.

The transaction has been effected by agreement with the two minority partners in Westcon Africa – namely International Technology Distributors F.Z. (15.9 % share of Westcon Africa) – with $2.45 million to be settled by the issue of Datatec shares and a deferred cash payment based on 15.9% of half of the increase in value of Westcon Africa from 31 August 2011 to 28 February 2013.

The group has also settled with Mr & Mrs Paul Moser (17.2% share of Westcon Africa) through $2.65 million to be settled by the issue of Datatec shares and a deferred cash payment based on 17.2% of half of the increase in value of Westcon Africa from 31 August 2011 to 28 February 2013.

Datatec’s equity ownership of Westcon Africa will increase to 100% on 23 May.

“The total additional consideration referred to above which is payable based on half the increase in valuation of the vendors’ share of the Westcon Africa businesses from 31 August 2011 to 28 February 2013 is estimated to be $1.5 million based on an extrapolation of the growth of the business to date,” Datatec said.

As many as 900,142 ordinary Datatec ZAR0.01 shares are to be issued and listed pursuant to the transaction.