Datatec Limited, the South African-listed ICT group, is set to return R7.05 billion ($435 million) to shareholders through a special dividend, offering investors the option of receiving newly issued shares instead of cash.

In an announcement released on October 15, 2026, the Johannesburg Stock Exchange-listed company said fractional entitlements would be settled at 4,676.27029 South African cents per share, based on a 10% discount to the volume-weighted average price of R51.96 recorded on October 14.

Datatec sets terms for fractional entitlements

The South African information and communications technology group announced the special capital return on August 24, 2026, offering shareholders a choice between a cash dividend of R29 per ordinary share and newly issued, fully paid shares under a scrip distribution alternative.

Shareholders registered at the close of trading on October 16, 2026, are entitled to the distribution, subject to their election between cash and shares. The scrip distribution ratio, announced on October 6, provides 57.28241 new shares for every 100 ordinary shares held.

Under the rounding provision, fractional share entitlements are rounded down to the nearest whole share, with the remaining fraction settled in cash at the prescribed rate.

Shareholders receive cash for fractional shares

Datatec illustrated the arrangement with a shareholder holding 100 ordinary shares who elects to receive the scrip distribution.

Based on the announced ratio, the shareholder would qualify for 57 whole shares, with the remaining 0.28241 share settled in cash at 4,676.27029 cents per share. This results in a fractional payment of approximately R13.21.

The arrangement allows shareholders to participate in the share distribution without receiving fractional ordinary shares.

Tax implications for investors

Founded in 1986, Datatec is a leading provider of ICT solutions, focusing on software and cloud services, including Infrastructure as a Service (IaaS) and Software as a Service (SaaS). Under the leadership of Montanana, Datatec, with footprints in over 50 countries, including North America, Latin America, Europe, Africa, the Middle East, and Asia-Pacific, has evolved into a global ICT solutions provider with operations spanning multiple continents, offering services in integration, managed services, and cybersecurity through its subsidiaries, including Logicalis.

Datatec said the scrip distribution and cash paid for fractional entitlements would not be subject to dividend withholding tax under South Africa’s Income Tax Act. However, recipients of fractional payments could face income tax or capital gains tax, depending on their individual circumstances.

The company added that the special cash dividend could have tax implications for both resident and non-resident shareholders and would generally be subject to dividend withholding tax unless an exemption applies.

Datatec’s announcement was issued in Johannesburg on October 15, 2026. Pallidus Exchange Services Proprietary Limited acted as the company’s sponsor.