The Untold Story of Datatec’s Billion-Rand Payday
A juicy secret lurks beneath the surface of Datatec’s latest financials, and CEO Jens Montanana is about to spill the beans. The man behind South Africa’s largest listed IT company, Datatec, has been quietly cooking up a plan to unlock a staggering R1.5 billion in value for shareholders. And he’s putting his money where his mouth is – literally.
Montanana, a 63-year-old maverick, has just increased his stake in Datatec to 17%, making him one of the company’s biggest shareholders. He’s been on a quest to unlock the value he believes is trapped in the company, and he won’t stop until he gets it done.
But here’s the twist – Montanana believes Datatec’s valuation is a whopping 33% lower than similar companies globally. That’s like saying you can buy a Ferrari for the price of a Toyota. Doesn’t feel quite right, does it?
So, what’s the plan to unlock this value? In a daring move, Montanana sold off a key subsidiary, Analysys Mason, for a staggering R4.1 billion. The proceeds were then returned to shareholders in the form of a special dividend. Talk about a windfall!
But the real fireworks are happening with Westcon, Datatec’s IT networking distribution business. After a tough year, Westcon is now cashing in on a 45% surge in cybersecurity sales – that’s a 1,000% increase from just a few years ago. And Logicalis, Datatec’s IT services business, is also cooking with gas, despite some notable hiccups in Latin America.
Despite being a major listed company, Datatec’s shares are still stuck in a rut. Montanana believes the key to unlocking value lies in finding a way to get noticed in global markets, perhaps by merging with a larger player. But don’t count him out just yet – he’s already got a plan B, C, and D.
With a monopoly on the South African IT market, Datatec’s shares are a hot ticket, and Montanana’s plan is to make sure the gravy train keeps on rolling. Will he succeed? Only time will tell, but one thing’s for sure – with Montanana at the helm, Datatec is ready to ride the waves of change and cash in on the next big opportunity.
