Datatec mulls Westcon-Comstor stake sale

 Johannesburg – Datatec, an international ICT solutions

and services group operating in more than 60 countries, says it may sell a

major share in Westcon-Comstor’s operations for $800 million.

The dual-listed company says, in a statement published on

Friday, the deal is subject to customary clearances, and there is no doubt it

will be finalised.

“There can be no certainty that the transaction will be

completed, nor as to the precise terms on which the transaction might be completed.

Shareholders are therefore advised to continue to exercise caution when dealing

in the company’s securities.

“The company undertakes to announce further details of

the potential transaction as soon as practicable.”

In addition, Datatec said underlying earnings per share, headline

earnings per share and earnings per share are expected to be more than 50 percent

lower year-on-year in the year to February.

This, it says, translates to underlying earnings per

share – its key measure of profitability – being at least 16 US cents lower.

Headline earnings per share last year came in at 19.4 US

cents, while earnings per share were 19.3 US cents.

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The year over year expected decline in earnings is as a

result of a worse than expected result in Westcon-Comstor, it says.

There was a decline in fourth quarter financial performance

in the Europe Middle East and Africa region, it explains.

Long its largest unit, Westcon-Comstor experienced

disruption to the business as a result of final stages of SAP implementation in

EMEA. It says Westcon-Comstor has made adjustments to the operating model and

Datatec expects this to support a rapid recovery.

Logicalis trading was in line with management’s

expectation.

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