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REINET INVESTMENTS S.C.A - Exchange rate for dividend payable on depository receipts in respect of underlying Reinet Investments SCA shares

Release Date: 05/09/2014 11:05
Code(s): REI     PDF:  
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Exchange rate for dividend payable on depository receipts in respect of underlying Reinet Investments SCA shares

Reinet Investments S.C.A. Depositary Receipts
issued by Reinet Securities SA
(Incorporated in Switzerland)
ISIN: CH0045793657
Depositary Receipt Code: REI


REINET SECURITIES SA – EXCHANGE RATE APPLICABLE FOR DIVIDEND PAYABLE ON DEPOSITORY RECEIPTS IN RESPECT OF UNDERLYING REINET INVESTMENTS S.C.A. SHARES ('REI DRs') 

The dividend payable to holders of Reinet Securities' DRs is derived from the dividend paid by Reinet Investments SCA, Luxembourg ('Reinet') to holders of Reinet shares. 

The Reinet DR dividend payable to South African Common Monetary Area residents is payable in rand and will be effected via central security depository participants in Strate for all dematerialised holdings and Computershare Investor Services (Pty) Limited for those on the certificated register. 

The Board has recommended a total dividend of Euro 0.15300 per share from income reserves. No credits in respect of South African secondary tax on companies are applicable. It is anticipated that this dividend will be approved by shareholders of Reinet at the annual general meeting to be held on 9 September 2014 in Luxembourg.  

There is no Luxembourg withholding tax payable on dividends which may be declared by the Company.

Reinet has sought clarification from the South African Revenue Service ('SARS') as to the treatment of any dividends to be declared by the Company and paid to holders of Reinet Depository Receipts ('DRs'). SARS has confirmed to Reinet that any such dividends will be treated as 'foreign dividends' as defined in the Income Tax Act No. 58 of 1962. Accordingly, any such dividends will be subject to South African dividends withholding tax at 15 per cent in the hands of DR holders unless those holders are otherwise exempt from the tax. Non-resident holders of DRs who have completed the appropriate SARS declaration form and meet the relevant requirements will be exempt from the dividend tax.   

As Reinet DRs trade in the ratio of 10 DRs to each Reinet share, the dividend entitlement per Reinet DR is as follows:


               Gross dividend    South African     Net dividend
               per Reinet DR     dividend tax      (in Euro cents)
               (in Euro cents)   at 15% (in Euro
                                 cents) 

Total          1.5300            (0.2295)          1.3005

The exchange rate applicable for the conversion of euro to rand for payment of the dividend is ZAR 13.90130: Euro 1. Accordingly the net dividend payable per Reinet DR is ZAR 18.07864 cents, as set out in the table below:


               Gross dividend    South African     Net dividend
               Per Reinet DR     dividend tax      (in ZAR cents)
               (in ZAR cents)    at 15%         
                                 (in ZAR cents)

Total          21.26899          (3.19035)         18.07864


The key dates for the dividend in respect of the South African Reinet DRs are anticipated to be as follows: 

Last date to trade "cum dividend"      Friday, 12 September 2014


Trading commences "ex-dividend" from
the commencement of business on        Monday, 15 September 2014

Reinet DR dividend record date         Friday, 19 September 2014

Reinet DR dividend payment date        Friday, 26 September 2014

Reinet DR Holders may not dematerialise or rematerialise their holding of Reinet DRs between Monday, 15 September 2014 and Friday, 19 September 2014, both dates inclusive.

Reinet Securities SA Depository Receipts are issued subject to the terms of the Deposit Agreement entered into on 17 October 2008, most recently amended on 15 December 2010. By holding Depository Receipts, investors acknowledge that they are bound by the terms of the Deposit Agreement. Copies of the Deposit Agreement may be obtained by investors from Reinet Securities SA or Computershare Investor Services (Pty) Limited.

Reinet Securities SA may appoint a depository agent or other parties to assist in the administration of the depository receipt programme and may provide to such agents such information as it deems to be appropriate, including information relating to the identity of holders of depository receipts.   

5 September 2014

Merchant bank and sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)

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