Westcon refinancing funds return to shareholders

Datatec has entered into binding agreements with funds managed by General Atlantic for the refinancing of and a minor equity investment in the Westcon business. This establishes a standalone capital structure for Westcon with Datatec retaining control of the business. The Datatec board expects to return the $434m net proceeds of the transaction to shareholders in the form of a special dividend, which at the current share price, equates to a yield of 31%. This marks further progress with the board’s strategy to reduce the gap between the value of the underlying businesses and the group valuation.