Datatec announced yesterday that it has issued 8 million shares for cash as part of its plan to acquire Dutch network distribution company Landis.
JSE-listed Datatec announced last month that it was to acquire the Amsterdam-listed network distribution company as part of its plan to extend its European footprint.
Investors were told yesterday that Datatec had issued 8 million shares to Gensec Bank or its nominees to fund part of the deal.
The shares were issued in two tranches. The first of 3 million shares was issued at 1 860c, which is at a 36% premium to the traded price at the time of the agreement.
The second tranche was issued at 2 000c, or a 5.6% discount to the share price at the time the deal was signed.
The issue will finance part of the acquisition price of Landis, with the remainder to be settled in shares in either Datatec or its unlisted US subsidiary, Westcon.
Cumulatively, the issued shares constitute 6.1% of Datatec`s share capital prior to the release.
Landis has operations in 10 European countries, including France, Germany and the UK. Datatec management says it intends to combine the distribution assets and businesses of Landis with Westcon to form the industry`s largest data and voice networking distributor concern.
Datatec management has also told investors that should the Landis deal not materialise, the cash will be used for other investment opportunities if and when they should arise.
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