International ICT company Datatec is to return more than R7bn to shareholders through the payment of a special dividend, a move which boosted its share price by almost 10% in early Monday trade on the JSE.This follows the conclusion in June, through its subsidiary Westcon International, of agreements with Atlantic Park Strategic Capital II Designated Activity Company and Atlantic Park Strategic Master Fund III for the refinancing of the Westcon International Group Holdings (WIGHL), the intermediate holding company of the Westcon group of companies, and a minority investment in WIGHL.The transaction was completed on August 4, and Datatec will return an amount of R7.05bn (about $435m) to shareholders by declaring a special cash dividend of R29 per share, it said on Monday.The special dividend is payable on October 16.All transaction-related costs will be absorbed by the company to maximise the distribution to shareholders, Datatec said.The special cash dividend will be paid out of Datatec’s distributable retained profits, it said.A dividend withholding tax of 20% will be applicable to all shareholders who are not exempt from it, and after that deduction the net special cash dividend is R23.20 per share.Shareholders may elect to receive new shares as an alternative to the special dividend, Datatec said.By 9.30am on Monday on the JSE, Datatec’s share price was up 9.67% at R87.45, valuing the company at just over R21bn. In June, Business Day reported Datatec’s R7bn deal with Atlantic Park injects fresh capital into its Westcon business while bringing in new equity partners that will help fund the business in the future. With operations in more than 50 countries, the group is one of the JSE’s largest ICT services firms. It operates predominantly from two main divisions, Logicalis and Westcon International, the latter distributing security and networking technology products.Proceeds from the transaction components generated cash proceeds to Datatec of about $434m. The business is experiencing growth driven by AI-enabled infrastructure investment and demand for more cybersecurity solutions. The first component of the transaction is a partial refinancing of the company’s existing $450m intercompany fixed return shareholder loan advanced by Westcon International to WIGHL through a new six-year $375m senior secured debt facility provided by General Atlantic. Second is a cash equity co-investment by General Atlantic of $25m to acquire 5% of the share capital of WIGHL from existing shareholders. Third is the issue of shares in WIGHL to General Atlantic, structured to replicate the economic effect of 4% penny warrants and 8% at-the-money warrants. Fourth is a restructure of WIGHL’s management incentives. CEO Jens Montanana said Datatec will retain control while partnering with General Atlantic, one of the world’s leading providers of capital, as both a minority investor and a lender to the business. Business Day reported previously that Montanana and his team have been fighting to restore the value Datatec has lost over the years. Most of those losses are attributed to its international operations, the bulk of its business, which have struggled over the past decade, resulting in a series of corporate actions to slim down the group.The group assembled a team from global investment bank Lazard to assist in unlocking value. The company said it is considering all options, including separate listings of Logicalis and Westcon International or selling to a larger group.Datatec has also recently embarked on an acquisition spree, expanding into new countries and regions, including Poland and the Balkans.Business Day