As part of an effort to unlock shareholder value, JSE-listed technology group Datatec is in talks about a potential transaction involving its Analysys Mason subsidiary.
Datatec, whose other businesses include Westcon International and Logicalis, cautioned shareholders on Tuesday that if the group’s negotiations regarding Analysys Mason are successful, it could have a material impact on its share price. Analysys Mason is a technology management consulting firm.
In the year to end-February 2022, Analysys Mason’s revenue jumped by 23.5% to US$90.4-million, while earnings before interest, tax, depreciation and amortisation increased by 8.8% to $11.1-million.
The talks involving Analysys Mason come after Datatec engaged Lazard & Co in 2021 to assist it with a “comprehensive evaluation of strategic options and initiatives to unlock and maximise shareholder value”.
In an interview with TechCentral last September, Datatec CEO Jens Montanana outlined the group’s strategic decision to find ways actively of unlocking shareholder value after its share price did not receive the sort of rerating in value enjoyed by its international peers.
Options
At the time, Montanana said Datatec was considering several options, including subsidiary listings and possible asset sales to address the valuation problem.
Datatec also published its annual results for the year to February 2022 on Tuesday. These showed a robust financial performance, with the dividend hiked by 11% to R1.11/share on revenue that rose by 12.8% to US$4.6-billion.
Datatec, founded by Montanana in 1986 and listed on the JSE in 1994, has a market capitalisation of about R8.5-billion. – © 2022 NewsCentral Media