Last close As at 24/08/2026
ZAR83.85
▲ 4.11 (5.15%)
Market capitalisation
ZAR20,397m
Research: TMT
As part of the refinancing of the Westcon division announced in June, the company had committed to paying out the proceeds of the transaction as a special dividend. It has now confirmed that it will pay out ZAR7.053bn/$435m, which is equivalent to 2900 ZAR cents/181 US cents per share. In addition to updating our forecasts for the precise payout, we have also reflected the new shares issued in July in relation to the scrip dividend.
| Year end | Revenue ($m) | PBT ($m) | EPS (¢) | DPS (¢) | P/E (x) | Yield (%) |
|---|---|---|---|---|---|---|
| 2/25 | 3,551.9 | 136.6 | 34.07 | 15.45 | 15.4 | 3.0 |
| 2/26 | 3,670.0 | 189.8 | 45.93 | 23.78 | 11.4 | 4.5 |
| 2/27e | 3,834.8 | 203.2 | 46.06 | 204.71 | 11.4 | 39.1 |
| 2/28e | 3,998.9 | 214.5 | 46.49 | 23.92 | 11.3 | 4.6 |
On 19 June, Datatec announced that it had agreed the refinancing of its Westcon division, which includes a small equity investment by General Atlantic. The transaction completed on 4 August, establishing a standalone capital structure for Westcon with Datatec retaining control of the business. The Datatec board committed to return the $434m net proceeds of the transaction to shareholders in the form of a special dividend. Yesterday the company confirmed it will pay out ZAR7.053bn/$435m as a special dividend, equivalent to 2900 ZAR cents/181 US cents (at ZAR16.0/$1). The company is offering a scrip distribution alternative.
We have updated our EPS and DPS forecasts to reflect the higher share count arising from scrip dividends paid in July relating to the FY26 final dividend. We have also reflected the precise amount of the special dividend payout. For the special dividend and all future dividends, we assume a 100% cash payout and will adjust for scrip dividends once paid.
Datatec currently trades on EV/adjusted EBITDA multiples of 4.5x in FY27 and 4.1x in FY28, well below its peer group (average of 8.9x across both years). On a conservative sum-of-the-parts valuation using peer group averages, we estimate that Datatec could be worth ZAR108.43 (up from ZAR104.43 when we last wrote reflecting higher peer multiples offset by higher share count and a weaker dollar versus the rand). Post the special dividend, this would reduce to ZAR79.43. Sustained recovery in trading in Logicalis Latam, gross profit growth and improving the conversion of gross profit to EBITDA across the group will be key to further reducing the discount to peers.
The record date for the cash dividend and scrip distribution alternative will be 19 October. The share will go ex-dividend on 14 October.
The scrip alternative distribution will be priced based on the volume weighted average price (VWAP) of the share traded on the JSE during the 30-day trading period ending on 5 October, less the amount of the special cash dividend. Shareholders must make their election to receive a scrip distribution alternative by 16 October.
We have updated our forecasts to reflect the precise value of the special dividend. We assume a 100% cash take-up. We have also updated our forecasts to reflect the take-up of the scrip alternative distribution for the FY26 final dividend. This resulted in a cash payout of $8.9m and the issue of 4,596,165 shares. For all future dividends, we assume a 100% cash payout and only reflect shares arising from scrip dividend elections once issued.
The higher share count results in reduced EPS forecasts, and consequently dividend per share forecasts (as these are based on paying out 50% of underlying EPS). Net debt is slightly reduced reflecting the-lower-than-expected cash payout for the FY26 final dividend.
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Borussia Dortmund’s FY26 net loss was at the low end of management’s revised expectations for the year. The financial results reflect the first team’s elimination from the Champions League knockout phase versus reaching the quarter-final stage in the 2024/25 season. Management’s first guidance for positive net income reflects its standard assumption that the first team will progress to the Round of 16 of the Champions League in the 2026/27 season.