Datatec CEO Jens Montanana. says partnering with Atlantic Park Capital will enhance subsidiary Westcon's financial capability and growth prospects.
Datatec’s share price rallied after telling its shareholders they are in line for a special dividend of up to R7.1 billion arising out of the proceeds of a major refinancing that positions the group well to scale up its operations.
The share price ended 5.87% higher at R89,97 on the JSE on Friday, one of the top five movers on the JSE on the day, a price also well above the R63,75 it traded at a year ago.
The information and communication technology company said Friday its subsidiary Westcon International had reached agreement with Atlantic Park Strategic Capital II Designated Activity Company and Atlantic Park Strategic Master Fund III, for the refinancing of Westcon International Group Holdings (WIGH), the holding company of the Westcon group of companies, as well as for a minority investment in WIGHL.
“Partnering with a global institutional capital provider will enhance Westcon's financial capability. The business is at an inflection point in its evolution and the robustness of the organisation is at a point where further scale could produce an acceleration in performance improvement while appealing to additional technology suppliers and customers,” Datatec’s board said.
