HOSKEN CONSOLIDATED INVESTMENTS LTD - Montauk Holdings Ltd Unbundling - Apportionment Ratio for South African Taxation Purposes

Montauk Holdings Ltd Unbundling - Apportionment Ratio for South African Taxation Purposes

HOSKEN CONSOLIDATED INVESTMENTS LIMITED
(Incorporated in the Republic of South Africa)
Registration number: 1973/007111/06
Share code: HCI ISIN: ZAE000003257
(“HCI” or “the Company”)



MONTAUK HOLDINGS LIMITED UNBUNDLING – APPORTIONMENT RATIO FOR SOUTH AFRICAN
TAXATION PURPOSES



1. Introduction

   HCI ordinary shareholders (“HCI Shareholders”) are referred to the SENS announcement dated Wednesday,
   19 November 2014 (the “Announcement”) relating to the unbundling of HCI’s ordinary shares in Montauk
   Holdings Limited (“Montauk”) to HCI Shareholders (“the Unbundling”) in the ratio of 120.03411 Montauk
   ordinary shares (“Montauk Shares”) for every 100 HCI ordinary shares (“HCI Shares”) held on
   Friday, 5 December 2014 (“Record Date”).

   The Unbundling amounts to a distribution in specie in terms of section 46 of the South African Income Tax
   Act, 1962 (Act 58 of 1962) ("the Act"), as amended.

   The purpose of this announcement is to advise HCI shareholders of:
   •    the closing prices of both the HCI Shares and the Montauk Shares on 8 December 2014; and
   •    the cost apportionment ratio in which the expenditure incurred and/or the valuation of HCI Shares must
        be apportioned between the Montauk Shares received in terms of the Unbundling and the HCI Shares
        for South African taxation purposes (the “Apportionment Ratio”).

   Shareholders are referred to the Announcement and the Montauk pre-listing statement dated 19 November
   2014 for the summaries of the tax implications of the Unbundling.

2. Apportionment Ratio

   HCI Shareholders are advised that the Apportionment Ratio, based on the relative market values of the
   Montauk Shares and the HCI Shares at the close of business on 8 December 2014, is as follows:

                                                                  
                                       Entitlement                Closing price on              Apportionment
                                            ratio                  8 December 2014                      Ratio
                                                                           (cents)

    HCI Shares                          100.00000                           15,295                  96.22420%
    Montauk Shares                      120.03411                              500                   3.77580%


   The Apportionment Ratio for purposes of Section 46 of the Act is 96.22420% relating to an HCI Share and
   3.77580% relating to a Montauk Share, based on the closing share prices of an HCI Share and a Montauk
   Share on the JSE on Monday, 8 December 2014, being the date of the Unbundling, of R152.95 and R5.00
   respectively.

   The Apportionment Ratio is to be used, after the Unbundling, to apportion the expenditure incurred and/or
   valuation in respect of an HCI Share held. The expenditure must be apportioned between the HCI Share held
   after the Unbundling and the Montauk Share received in terms of the Unbundling for the purposes of
   determining the profits or losses, of a capital or trading nature, derived from any future disposal of the HCI
   Share or Montauk Share. A summary of the South African tax considerations relating to the Unbundling is set
   out in the Announcement and the Montauk pre-listing statement dated 19 November 2014. Holders of HCI
   Shares are, however, advised in all circumstances to seek their own advice regarding the taxation
   implications of the Unbundling.

   This announcement is not intended to be a complete analysis of the tax implications of the Unbundling. It is
   not intended to be, nor should it be considered to be, legal or tax advice. HCI Shareholders should therefore,
   consult their own tax advisers on the tax consequences of the Unbundling in both South Africa and their
   jurisdiction of residence, for which neither Montauk, HCI nor their advisers will be held responsible.


   Cape Town
   10 December 2014

   Transaction Adviser and Sponsor: Investec Bank Limited

   Corporate law adviser: Edward Nathan Sonnenbergs Inc.

   Reporting accountants: Grant Thornton (Jhb) Inc

Date: 10/12/2014 02:04:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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