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Sbk - Standard Bank - Planned Amendment Of Certain Terms Of Standard Bank`s Black Share Ownership Initiative Standard Bank Group Limited (Incorporated in the Republic of South Africa) (Registration number 1969/017128/06) JSE share code: SBK NSX share code: SNB ISIN: ZAE000109815 ("Standard Bank") Planned amendment of certain terms of Standard Bank`s black share ownership initiative Given the strategic importance to Standard Bank of its black share ownership initiative, shareholders are hereby advised of plans to amend certain terms of the initiative. The black share ownership initiative was implemented in October 2004 and has been significantly successful to date in creating wealth for black shareholders. As a consequence of Standard Bank`s share price performance and the positive impact of the ICBC transaction, the preference share debt funding provided by Standard Bank to the black share ownership initiative (expressed on a "per Standard Bank ordinary share" basis) currently represents approximately R34.73 per share compared to a closing Standard Bank ordinary share price of R98.50 at 9 December 2009. This equates to a 2.8 times financial cover ratio. The aggregate value of the preference share debt outstanding is R3,062 million. The black share ownership initiative has accordingly been significantly successful, with value created for black shareholders in excess of R6,000 million, based upon a Standard Bank ordinary share price of R98.50. Under current arrangements, participants are not, until 1 January 2015, able to access any of the value in the scheme, as participants may not provide their interests in the black ownership structures as collateral for borrowings and cash flows remain with the schemes to repay the preference share funding. Standard Bank has proposed to the trustees and representatives of the black ownership initiative that it will permit dividends paid on Standard Bank ordinary shares and received by the black ownership structures to flow through to the participants in those structures, subject to: - a minimum two times ordinary share price cover being maintained on the outstanding preference share funding obligation at the date of declaration of each ordinary dividend; and - the term of the preference share funding provided by Standard Bank being reduced from the original agreed 20 years to a maximum 15 years. It is Standard Bank`s view that these amendments will provide scheme participants access to a limited portion of the initiative`s built up value, whilst not exposing Standard Bank to undue risk on the outstanding preference share funding provided. The financial impact on Standard Bank`s shareholders due to the delayed repayment of the preference share debt will not be significant and will partially be compensated for by the reduction of the term of the preference share funding. These amendments are subject to the approval of the trustees or shareholders of the respective black ownership structures and certain administrative steps, but are expected to be completed in the first quarter of 2010, with the first flow- through of ordinary dividends expected to occur with respect to the final dividend for the financial year ended 31 December 2009, which is scheduled to be paid in early April 2010. Johannesburg 10 December 2009 Investment Bank and Sponsor Standard Bank Independent sponsor Deutsche Securities (SA) (Pty) Ltd Date: 10/12/2009 17:00:01 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.
