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Dividend Currency Conversion Announcement - Dividend No. 138
Hammerson plc
(Incorporated in England and Wales)
(Company number 360632)
LSE share code: HMSO JSE share code: HMN
ISIN: GB0004065016
(‘Hammerson’ or ‘the Company’)
Dividend Currency Conversion Announcement - Dividend No. 138
4 March 2020
On 25 February 2020, the Board of Directors of the Company proposed a final dividend of
GBP 14.8 pence per share for the period ended 31 December 2019 (“the Dividend”), subject
to approval by the shareholders of the Company at the Annual General Meeting to be held
on Tuesday, 28 April 2020.
The Dividend will be subject to a 20% UK withholding tax unless exemptions apply. It will be
treated as a Property Income Distribution (“PID”), net of withholding tax where appropriate.
The Company will not be offering a scrip dividend alternative, but for shareholders who wish
to receive their dividend in the form of shares, the Dividend Reinvestment Plan (“DRIP”) will
be available.
The Dividend is payable on Thursday, 30 April 2020 to shareholders registered on the UK
principal register (“UK Shareholders”) and the South African branch register (“SA
Shareholders”) who have elected to receive the Dividend in cash. The Record Date for both
UK Shareholders and SA Shareholders is at the close of business on Friday, 20 March 2020. The
DRIP purchases settlement date (subject to market conditions and the purchase of shares in
the open market) is Monday, 4 May 2020 in the UK and Wednesday, 6 May 2020 in South
Africa.
The Dividend should be regarded as a “foreign dividend” for SA income and SA dividend tax
purposes.
Shareholders receiving the Dividend in cash
The Company confirms that the South African Rand exchange rate for the Dividend will be
ZAR 19.7816 to GBP 1. The Dividend is payable in South African Rand to SA Shareholders.
Shareholders who do not elect the DRIP will be paid as follows:
PID UK Shareholders SA Shareholders
(GBP pence) (ZAR cents)
Gross amount of PID 14.80 292.76768
Less 20% UK withholding tax/20% SA 2.96 58.55354
dividends tax
Net PID dividend payable* 11.84 234.21414
Less 5% SA Shareholders excess n/a 14.63838
reclaim
Net PID dividend payable** n/a 219.57576
*Net position after SA Shareholders have claimed back 5% from HMRC under the double tax
agreement between the United Kingdom and South Africa.
** Before SA shareholders have claimed back 5% from HMRC under the double tax
agreement between the United Kingdom and South Africa.
Cash PIDs
A 20% UK withholding tax will be deducted from cash PIDs. The Company will account to Her
Majesty’s Revenue & Customs (“HMRC”) in sterling for the total UK withholding tax deducted.
SA dividends tax, at the rate of 20%, will apply to cash PIDs payable by the Company unless
the beneficial owner of the Dividend is exempt from SA dividends tax (e.g. if it is a South
African resident company). Under the double tax agreement between the UK and South
Africa (“the DTA”), the maximum tax payable in the UK is 15%. South African resident
shareholders are therefore entitled to claim the excess of 5% from HMRC. As SA Shareholders
are entitled to reclaim this excess from HMRC, the maximum rebate allowable in respect of
the UK withholding tax against the SA dividends tax is 15%, which means that the Company
will have to withhold a further 5% from the Dividend in South Africa to bring the total dividends
tax to 20%. In summary, therefore, 20% will be withheld in the UK, a further 5% will be withheld
in South Africa (where appropriate), but South African resident shareholders will be entitled
to claim back 5% from HMRC, which will bring the overall total to 20%.
Shareholders electing the DRIP
SA Shareholders electing the DRIP should note that, in respect of fractional entitlements that
may arise, all allocations of shares will be rounded down to the nearest whole number, and
any residual amounts that are not used to reinvest in shares (as a result of rounding down) will
be paid out to these SA Shareholders in cash.
It is the Company’s understanding that the residual cash paid to SA Shareholders who have
made DRIP elections would already have been taxed prior to the calculation of the number
of shares and any residual cash owing to such SA Shareholders. Accordingly, no further tax
should be payable on the cash paid to SA Shareholders as a result of any fractional
entitlements.
The above information and the guidelines on the taxation of dividends are provided as a
general guide based on the Company’s understanding of the law and practice currently in
place. Any shareholder who is in any doubt as to their tax position should seek independent
professional advice.
Registered Office UK Registrars SA Transfer Secretaries
Kings Place Link Asset Services Computershare Investor
90 York Way The Registry Services Proprietary Limited
London 34 Beckenham Road (Registration number
N1 9GE Beckenham 2004/003647/07)
United Kingdom Kent 1st Floor, Rosebank Towers
BR3 4TU 15 Biermann Avenue,
United Kingdom Rosebank, 2196
South Africa
(Private Bag, X9000, Saxonwold 2132 South
Africa)
For further information contact:
Julia Crane
Deputy Company Secretary
Tel: +44 (0)20 7887 1000
Hammerson has its primary listing on the London Stock Exchange and a secondary
inward listing on the Johannesburg Stock Exchange.
Sponsor:
Investec Bank Limited
Date: 04-03-2020 12:00:00
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