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SAFARI INVESTMENTS (RSA) LTD - Declaration And Finalisation Announcement For The Cash Distribution With The Election To Reinvest

Release Date: 07/11/2014 09:38
Code(s): SAR     PDF:  
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Declaration And Finalisation Announcement For The Cash Distribution With The Election To Reinvest

SAFARI INVESTMENTS RSA LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2000/015002/06)
Approved as a REIT by the JSE Limited
Share code: SAR ISIN: ZAE000188280
(“Safari” or “the Company”)

DECLARATION AND FINALISATION ANNOUNCEMENT FOR THE CASH DISTRIBUTION
WITH THE ELECTION TO REINVEST AND POSTING OF CIRCULAR

Shareholders are referred to the Safari consolidated interim financial results for the six month
period ended 30 September 2014 announcement, which was released on SENS on
Wednesday, 29 October 2014 (“the Announcement”). The Announcement included reference to
a cash distribution with the option to reinvest the cash distribution for ordinary Safari shares.

The directors of Safari have declared a gross cash distribution of 34 cents per share with the
election to reinvest the cash distribution in return for Safari shares in the ratio of 4.25 new Safari
shares for every 100 Safari shares held.

POSTING OF CIRCULAR
Safari posted a circular to shareholders today, 7 November 2014 setting out full particulars
relating to the cash distribution with the election to reinvest the cash distribution in return for
Safari shares.

SALIENT DATES AND TIMES
The following salient dates and times are applicable to the cash distribution with the option to
reinvest the cash distribution for ordinary Safari shares:

Circular and enclosed forms posted to shareholders                       Friday, 7 November 2014

Declaration and finalisation announcement on SENS for                    Friday, 7 November 2014
the cash distribution or share alternative

Last day to trade cum distribution                                      Friday, 28 November 2014

Shares to trade ex distribution                                          Monday, 1 December 2014

Listing of maximum possible number of share alternative               Wednesday, 3 December 2014
shares commences on the JSE Limited (“JSE”)

Last day to elect to receive the share alternative at                    Friday, 5 December 2014
12:00 (South African time) (no late forms of election will
be accepted)

Record date                                                              Friday, 5 December 2014

Announcement of results of cash distribution and share                   Monday, 8 December 2014
alternative on SENS

Cheques posted to certificated shareholders and                          Monday, 8 December 2014
accounts credited by CSDP or broker to dematerialised
shareholders electing the cash alternative on or about

Share certificates posted to certificated shareholders               Wednesday, 10 December 2014
and accounts credited by CSDP or broker to
dematerialised shareholders electing the share
alternative on or about

Adjustment to shares listed on the JSE on or about                     Friday, 12 December 2014

Notes:
1. Shareholders electing the share alternative are alerted to the fact that the new shares
   will be listed on LDT + 3 and that these new shares can only be traded on LDT + 3, due
   to the fact that settlement of the shares will be three days after record date, which
   differs from the conventional one day after record date settlement process.
2. Shares may not be dematerialised or rematerialised between the commencement of trade on
   Monday, 1 December 2014 and the close of trade on Friday, 5 December 2014.

TAX IMPLICATIONS
In accordance with Safari’s status as a Real Estate Investment Trust (“REIT”) shareholders are
advised that the dividend meets the requirements of a “qualifying distribution” for the purposes
of section 25BB of the Income Tax Act, No 58 of 1962 (“Income Tax Act”). The dividends on the
shares will be deemed to be dividends for South African tax purposes in terms of section 25BB
of the Income Tax Act.

Tax implications for South African resident shareholders
Dividends received by or accrued to South African tax residents must be included in the gross
income of such shareholders and will not be exempt from income tax in terms of the exclusion
to the general dividend exemption contained in section 10(1)(k)(i)(aa) of the Income Tax Act
because they are dividends distributed by a REIT. These dividends are however exempt from
dividend withholding tax (“Dividend Tax”) in the hands of South African resident shareholders
provided that the South African resident shareholders have provided to the CSDP or broker, as
the case may be, in respect of uncertificated shares, or the company, in respect of certificated
shares, a DTD(EX) (Dividend Tax: Declaration and undertaking to be made by the beneficial
owner of a share) form to prove their status as South African residents.

If resident shareholders have not submitted the abovementioned documentation to confirm their
status as South African residents, they are advised to contact their CSDP, or broker, as the
case may be, to arrange for the documents to be submitted prior to the payment of the dividend.

Tax implications for non-resident shareholders
Dividends received by non-resident shareholders from a REIT will not be taxable as income and
instead will be treated as ordinary dividends which are exempt from income tax in terms of the
general dividend exemption in section 10(1)(k)(i) of the Income Tax Act. With effect from 1
January 2014, any dividend received by a non-resident from a REIT will be subject to Dividend
Tax at 15%, unless the rate is reduced in terms of any applicable agreement for the avoidance
of double taxation (“DTA”) between South Africa and the country of residence of the non-
resident shareholder. Assuming Dividend Tax will be withheld at a rate of 15%, the net dividend
amount due to non-resident shareholders is 28.9 cents per share with the election to reinvest
the cash distribution in return for Safari shares in the ratio of 3.6125 new Safari shares for every
100 Safari shares held. A reduced dividend withholding rate in terms of the applicable DTA may
only be relied on if the non-resident shareholder has provided the following forms to their CSDP
or broker, as the case may be, in respect of uncertificated shares, or the company, in respect of
certificated shares:

   •   a declaration that the dividend is subject to a reduced rate as a result of the application
       of a DTA; and
   •   a written undertaking to inform the CSDP, broker or the company, as the case may be,
       should the circumstances affecting the reduced rate change or the beneficial owner
       cease to be the beneficial owner, both in the form prescribed by the Commissioner for
       the South African Revenue Service.

If applicable, non-resident shareholders are advised to contact the CSDP, broker or the
company, as the case may be, to arrange for the abovementioned documents to be submitted
prior to payment of the dividend if such documents have not already been submitted.

Other information
   • The ordinary issued share capital of Safari is 170 000 000 ordinary shares of no par
       value before any election to reinvest the cash distribution.
   • Income tax reference number of Safari: 9012/264/14/0.
   • Safari has no secondary tax on company (“STC”) credits available to be utilised against
       the Dividend Tax.
   • The cash distribution accrued over the six month period ended 30 September 2014 and
       will be paid out of retained earnings of the Company.
   • The share alternative is based on a share price of R8.00 per Safari share.

Shareholders are encouraged to consult their professional advisors should they be in any doubt
as to the appropriate action to take.

7 November 2014
Pretoria

Sponsor
PSG Capital

Date: 07/11/2014 09:38:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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