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PSG/PGFP - PSG Group Limited/PSG Financial Services Limited - Update

Release Date: 04/04/2012 17:06
Code(s): JSE PGFP PSG
Wrap Text

PSG/PGFP - PSG Group Limited/PSG Financial Services Limited - Update 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") UPDATE 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 SENS announcement dated 25 January 2012. In accordance with the PSG Preference Share Terms, the Company will adjust the Dividend Rate in the event that an amendment to the Income Tax Act results in both a cost saving to the Company and the Preference Dividends being taxable in the hands of the PSG Preference Shareholders. Such adjustment will, however, be limited to the extent that the Company incurs less cost in servicing the PSG Preference Shares. Shareholders are hereby advised that the PSG board of directors have resolved that the PSG Preference Shares Dividend Rate be increased from 75% to 83.33% of the prime interest rate with effect from 1 April 2012, being an increase of 11.11%, and which was calculated in terms of the formula as per the announcement dated 25 January 2012 when the widely anticipated Dividends Tax rate was 10%. PSG believes that the increase in the PSG Preference Shares Dividend Rate is fair, albeit that the aforementioned increase is marginally more than the 10% STC saving obtained by the Company. Shareholders should note that in terms of the relevant PSG Preference Share Terms, should there in future be any changes to Tax Legislation which result in additional tax being levied on dividends received by the PSG Preference Shareholders, there will be no obligation on the Company to adjust the PSG Preference Shares Dividend Rate, unless such changes to Tax Legislation simultaneously result in a cost saving to the Company in servicing such shares. Stellenbosch 4 April 2012 Sponsor PSG Capital Date: 04/04/2012 17:06:38 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.

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