South African tycoon Jens Montanana has seen the market value of his stake in Datatec Ltd. fall by $75 million in two weeks, as the Johannesburg-listed technology group’s shares retreated following a substantial special dividend. The decline highlights how dividend adjustments can sharply reduce a shareholder’s quoted wealth, even when the underlying business remains profitable.

Montanana, Datatec’s founder and CEO, holds 44,937,489 shares, representing 19.01% of the company’s issued stock. His position makes him the group’s largest individual shareholder, while the Public Investment Corporation, one of South Africa’s biggest institutional asset managers, holds 12.71% after reducing its stake in recent times.

Data tracked by Shore.Africa show that the value of Montanana’s holding fell to R2.68 billion ($164.48 million) from R3.9 billion ($239.49 million), wiping R1.22 billion ($75 million,) off its market value.

Datatec shares declined to R59.71 ($3.66) from R86.94 ($5.33) on October 12, reflecting a 31.32% drop over the past 15 days on the Johannesburg Stock Exchange (JSE). The retreat pushed the company’s market capitalization to $1.37 billion, reversing earlier gains as investors assessed the impact of the dividend adjustment and changes in shareholder positions.

Dividend changes the calculation

The share-price decline followed Datatec’s distribution of a special cash dividend linked to the refinancing of its Westcon International business and a minority investment transaction. The company paid its most recent special dividend of R7.05 billion ($435 million) on Oct. 19, 2026, after a record date of Oct. 16, according to the supplied information.

Montanana’s holding entitled him to approximately R1.3 billion ($78.35 million) in gross distributions, based on the exchange rate implied by the company’s announcement. Assuming the full 20% South African dividend withholding tax applied and he elected the cash option, the amount would fall to R1.04 billion ($62.64 million).

The dividend is important when assessing the decline in Montanana’s wealth. Shares typically adjust downward when they begin trading without entitlement to a dividend, meaning the fall in the quoted price does not, by itself, measure the shareholder’s overall economic loss. The cash distribution partly offsets that adjustment for eligible investors.

Profit growth supports operations

Datatec’s operating performance offers a counterpoint to the share-price weakness. The group reported profit of $108.73 million, up 56.94% from $69.28 million, while revenue increased to $3.67 billion from $3.55 billion. Gross profit climbed to $997.8 million from $910.32 million, reflecting growth in its technology businesses.

Software and services accounted for about 71% of gross income, underscoring the contribution of higher-value technology services to the group’s results. Demand for cybersecurity, network upgrades and artificial intelligence infrastructure supported its business mix as companies continued investing in digital systems and enterprise technology.

Datatec’s total assets increased 16.91% to $4.65 billion from $3.97 billion, while total equity reached $618.48 million. The group supplies networking, cybersecurity, cloud infrastructure and technology services across Africa, the Americas, Europe and Asia-Pacific, operating in more than 50 countries through businesses including Westcon International and Logicalis.

Founder maintains leadership role

Montanana founded Datatec in 1986 and has led the company for decades. After its 1994 Johannesburg Stock Exchange listing, he served as chairman and CEO before an independent nonexecutive chair position was introduced in 2001. He remains CEO and chairs several major subsidiaries, including Logicalis International.

Before building Datatec, Montanana was managing director and vice president of U.S. Robotics (UK) Ltd. From 1989 to 1993. He later co-founded Xedia Corp., a U.S. technology company acquired by Lucent Technologies in 1999. His long association with Datatec places him at the center of the group’s operations and shareholder base.

Investors await full results

Datatec’s latest trading update indicated very strong financial performances from Westcon International and Logicalis International in the first half of fiscal 2027, while Logicalis Latin America experienced weaker trading. Underlying earnings per share for the period were expected to increase by 52.9% to 60.6% from the comparable period a year earlier.

The company said shareholders holding about two-thirds of its shares opted for the scrip distribution alternative linked to the Westcon transaction. Investors are awaiting Datatec’s full interim results, scheduled for Oct. 29, which should provide further detail on operating performance and the outlook for its businesses.

Despite the recent decline in Datatec’s share price and the resulting drop in the value of his holdings, Jens Montanana remains the company’s largest shareholder and one of the wealthiest investors on the Johannesburg Stock Exchange.