Sharenet Sites 
Sharenet Sites
PSG/PGFP - PSG Group Limited/ PSG Financial Services Limited - Announcement regarding the introduction of dividends tax PSG Group Limited (Incorporated in the Republic of South Africa) Registration number: 1970/008484/06 JSE share code: PSG ISIN number: ZAE000013017 PSG Financial Services Limited (Incorporated in the Republic of South Africa) Registration number: 1919/000478/06 JSE share code: PGFP ISIN number: ZAE000096079 ("PSG" or "the Company") ANNOUNCEMENT REGARDING THE INTRODUCTION OF DIVIDENDS TAX Shareholders in PSG`s cumulative, non-redeemable, non-participating preference shares ("PSG Preference Shares") are referred to the PSG Preference Share Terms. In terms of the aforesaid, the Company, inter alia, undertook to adjust the Dividend Rate in the event that an amendment to the Income Tax Act resulted in both a cost saving to the Company and the Preference Dividends being taxable in the hands of the PSG Preference Shareholders. It has been announced that from the date that Part VIII of Chapter II of the Income Tax Act becomes effective ("the Dividends Tax Circumstances"), dividends paid to shareholders will no longer be taxed in the Company`s hands, but will from such date be taxed in the hands of PSG Preference Shareholders. As set out above and in the spirit of such undertaking, PSG has therefore resolved to pass any such tax saving on to the PSG Preference Shareholders on the basis and subject to the terms set out below. The Dividend Rate as a percentage of the Prime Rate ("Prime") will therefore be increased in accordance with the following formula: NDR = A/(1 - B) Where: NDR = the new Dividend Rate applicable to the PSG Preference Shares following the occurrence of the Dividends Tax Circumstances; A = the Dividend Rate prevailing immediately prior to the occurrence of the Dividends Tax Circumstances; B = the rate of Dividends Tax, it being recorded that as at the date of this Resolution, it is anticipated that Dividends Tax will be levied at 10% (ten percent). Practical example: If the Dividends Tax Circumstances were to become effective today and the aforesaid formula be applied, the prevailing Dividend Rate of 75% of Prime equating to 6.75% (Prime is currently 9%) would be increased to 83.33% of Prime equating to 7.5%. Notwithstanding the aforesaid, should the Company in future, for whatsoever reason, no longer enjoy the aforesaid tax saving, the Dividend Rate may be reduced accordingly. Stellenbosch 25 January 2012 Sponsor PSG Capital Date: 25/01/2012 16:30:01 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.
