Datatec has declared a R7.05 billion special dividend after completing a transaction involving the refinancing and minority investment in its Westcon business. The payment amounts to R29 per Datatec share, with shareholders also given the option to receive new shares instead of the cash dividend.
Datatec will return approximately R7.05 billion to shareholders through a special dividend following the completion of a transaction involving its Westcon International business.
The JSE-listed technology group announced on Monday that its board had declared a special cash dividend of 2,900 South African cents, or R29, per ordinary share. The total distribution amounts to R7.053 billion, equivalent to approximately $435 million.
The special dividend follows the completion of a transaction between Datatec's Westcon International subsidiary and General Atlantic. The transaction involved the refinancing of Westcon International Group Holdings and a minority investment by General Atlantic in the business.
Datatec said the transaction generated approximately $434 million in cash proceeds, which it had previously indicated would be distributed to shareholders through a special dividend. The transaction was completed on August 4, 2026.
Shareholders will be entitled to the R29-per-share payment based on their holdings at the close of business on October 16, 2026, which is the record date for the distribution. The company said the dividend will be paid from Datatec's distributable retained profits.
Datatec is also offering shareholders a scrip distribution alternative, allowing them to elect to receive newly issued Datatec shares instead of the special cash dividend for all or part of their holdings. Shares issued under the scrip alternative will not be subject to dividend withholding tax, according to the company's announcement.
The special distribution follows a separate final dividend of R2.25 per share that Datatec paid for the financial year ended February 2026. Shareholders received that distribution in July, with an option to receive new shares instead of cash.
The Westcon transaction is intended to provide the business with additional capital while allowing Datatec to retain control. Following completion, Datatec's economic interest in Westcon stood at 89.2%, while General Atlantic held 8.7% and Westcon management held 2.1%.
The special dividend represents a significant return of capital to Datatec shareholders while the group retains a controlling interest in Westcon and continues to operate its broader technology distribution and services businesses.
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