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

Release Date: 13/08/2015 09:30
Code(s): AIB AIA
 
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Amount of 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”)


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


Ascension shareholders are referred to the announcements released on SENS on 23 July 2015 and 30 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 final amount of the Ascension B share distribution per Ascension B
share for the six months ended 30 June 2015 is 13.53232 cents per Ascension B share (previously estimated to be 13.3
cents per Ascension B share as announced on SENS on 30 July 2015), based on the reviewed financial results of
Ascension for the year ended 30 June 2015. The final amount of the Ascension A share distribution for the six months
ended 30 June 2015 is 20.94750 cents per A share.

It is expected that Ascension’s reviewed results for the year ended 30 June 2015 will be released on SENS on
Monday, 17 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 shareholder. Assuming dividend
withholding tax will be withheld at a rate of 15%, the net distribution amount due to non-resident A
shareholders is 17.80538 cents per A share and the net distribution amount due to non-resident B
shareholders is 11.50247 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


13 August 2015



Corporate advisor and sponsor                            
Java Capital 


Legal advisor to the transaction
DLA Cliffe Dekker Hofmeyr


                                                           
Date: 13/08/2015 09:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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