South Africa's Datatec To Sell A Major Share Of Westcon-Comstor For Over $800 Million

Datatec has announced that they will possibly be selling a major share of Westcon-Comstor for over $800 million.

"The Company can now disclose that the cautionary announcement relates to a possible sale of a major share of Westcon-Comstor’s operations for a consideration (current and deferred) of more than US$800 million. The proposed transaction is subject to contract and exclusivity provisions." said Datatec in a statement.

Datatec further added that there is currently no certainty on whether the sale will go through.

"Shareholders are advised to continue to exercise caution when dealing in the Company’s securities", the statement noted. "The Company undertakes to announce further details of the potential transaction as soon as practicable."

This announcement comes as the company has also confirmed that earnings per share for the 2017 financial year will be more than 50% lower than in 2016 financial. Datatec has attributed this drop to "worse than expected results" in Westcon-Comstor.

There was a decline in fourth quarter financial performance in the Europe Middle East and Africa (“EMEA”) region, and Westcon-Comstor experienced disruptions to the business as a result of final stages of SAP implementation in EMEA.

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