ASCENSION PROPERTIES LIMITED - Finalisation of a special distribution to Ascension B shareholders and distribution to Ascension A shareholders

Release Date: 30/07/2015 11:29
Code(s): AIB AIA
 
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Finalisation of a special distribution to Ascension B shareholders and distribution to Ascension A shareholders

ASCENSION PROPERTIES LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2006/026141/06)
JSE share codes: AIA    ISIN: ZAE000204566
                 AIB    ISIN: ZAE000204574
(Approved as a REIT by the JSE)
(“Ascension” or “the company”)


FINALISATION OF A SPECIAL DISTRIBUTION TO ASCENSION B SHAREHOLDERS AND DISTRIBUTION TO ASCENSION A SHAREHOLDERS


Ascension shareholders are referred to the announcement released on SENS on 23 July 2015 relating to the declaration
of a special distribution to Ascension B shareholders for the six months ended 30 June 2015 (the “Ascension B share
distribution”) and the declaration of a distribution to Ascension A shareholders for the six months ended 30 June
2015 (the “Ascension A share distribution”). The Ascension B share distribution and the Ascension A share
distribution are collectively referred to as the “distributions”.

Ascension B shareholders are advised that the Ascension B share distribution per Ascension B share for the six
months ended 30 June 2015 is estimated to be 13.3 cents. In terms of Ascension’s memorandum of incorporation, the
Ascension A share distribution for the six months ended 30 June 2015 shall be calculated as 20.94750 cents per A
share.

The final amount of the distributions per Ascension A share and Ascension B share respectively for the six months
ended 30 June 2015 is expected to be announced on SENS by 13 August 2015.

It is expected that Ascension’s results for the year ended 30 June 2015 will released on SENS on Monday, 17 August
2015.

The Ascension B share distribution is payable to Ascension B shareholders recorded in the Ascension register on
Friday, 14 August 2015. It is expected that payment of the Ascension B distribution will be made to Ascension B
shareholders on Monday, 31 August 2015. In respect of dematerialised shareholders, it is expected that the Ascension
B share distribution will be transferred to the Central Securities Depository Participant (“CSDP”) or broker accounts
on Monday, 31 August 2015. It is expected that certificated shareholders’ distributions will be posted on or about
Monday, 31 August 2015.

The Ascension A share distribution is payable to Ascension A shareholders recorded in the Ascension register on
Friday, 28 August 2015. It is expected that payment of the Ascension A distribution will be made to Ascension A
shareholders on Monday, 31 August 2015. In respect of dematerialised shareholders, it is expected that the Ascension
A share distribution will be transferred to the CSDP or broker accounts on Monday, 31August 2015. It is expected
that certificated shareholders’ distributions will be posted on or about Monday, 31 August 2015.

Tax treatment

In accordance with Ascension’s status as a REIT, shareholders are advised that the distributions meet the requirements
of “qualifying distributions” for the purposes of section 25BB of the Income Tax Act, No. 58 of 1962 (“Income Tax
Act”). The distributions will be deemed to be a dividend for South African tax purposes, in terms of section 25BB of
the Income Tax Act.

The distributions 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 paragraph (aa) of section 10(1)(k)(i) of the Income Tax Act) because it is a dividend distributed by a
REIT. This distributions are, however, exempt from dividend withholding tax in the hands of South African tax
resident shareholders, provided that the South African resident shareholders provide the following forms to their
Central Securities Depository Participant (“CSDP”) or broker, as the case may be, in respect of uncertificated shares,
or Ascension, in respect of certificated shares:

a)    a declaration that the distribution is exempt from dividends tax; and
b)    a written undertaking to inform the CSDP, broker or Ascension, as the case may be, should the circumstances
      affecting the exemption 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. Shareholders are advised to
contact their CSDP, broker or Ascension, as the case may be, to arrange for the abovementioned documents to be
submitted prior to payment of the distributions, if such documents have not already been submitted.

Distributions received by non-resident shareholders will not be taxable as income and instead will be treated as an
ordinary dividend which is exempt from income tax in terms of the general dividend exemption in section 10(1)(k)(i)
of the Income Tax Act. It should be noted that up to 31 December 2013, distributions received by non-residents from a
REIT were not subject to dividend withholding tax. Since 1 January 2014, any distributions received by a non-resident
from a REIT are subject to dividend withholding 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 B
shareholder. Assuming dividend withholding tax will be withheld at a rate of 15%, the estimated net distribution
amount due to non-resident A shareholders is 17.80538 cents per A share and the estimated net distribution amount
due to non-resident B shareholders is 11.305 cents per B share. 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 Ascension, in respect of certificated shares:

a)    a declaration that the distributions are subject to a reduced rate as a result of the application of a DTA; and
b)    a written undertaking to inform their CSDP, broker or Ascension, 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. Non-resident shareholders
are advised to contact their CSDP, broker or Ascension, as the case may be, to arrange for the abovementioned
documents to be submitted prior to payment of the distribution if such documents have not already been submitted,if
applicable.

A shares in issue at the date of declaration of the distribution: 308 860 859
B shares in issue at the date of declaration of the distribution: 376 359 014

Ascension’s income tax reference number: 9368 910 15 5


30 July 2015


Corporate advisor and sponsor                                
Java Capital  


Legal advisor to the transaction
Cliffe Dekker Hofmeyr


                                                           
Date: 30/07/2015 11:29:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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