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SAFARI INVESTMENTS (RSA) LIMITED - Declaration and finalisation announcement for the cash distribution with the election to reinvest

Release Date: 19/11/2015 09:00
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
Approved as a REIT by the JSE Limited
Incorporated in the Republic of South Africa) 
(Registration number 2000/015002/06)
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

The directors of Safari have approved and 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 
3.88600 new Safari shares for every 100 Safari shares held.

Posting of circular
Safari will post a circular to shareholders tomorrow, 
20 November 2015 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:

Declaration and finalisation announcement on 
SENS for the cash distribution or share 
reinvestment alternative                       Thursday, 19 November
Circular and enclosed forms posted to 
shareholders                                     Friday, 20 November
Last day to trade (“LDT”) cum distribution        Friday, 4 December
Shares to trade ex distribution                   Monday, 7 December
Listing of maximum possible number of share 
reinvestment alternative shares commences on 
the JSE Limited (“JSE”)                        Wednesday, 9 December
Last day to elect to receive the share 
reinvestment alternative (no lateforms will 
be accepted) at 12:00 (South African time)       Friday, 11 December
Record date                                      Friday, 11 December
Announcement of results of cash distribution 
and share reinvestment alternative on SENS       Monday, 14 December
Cheques posted to certificated shareholders 
and accounts credited by CSDP or broker to 
dematerialised shareholders electing the cash 
alternative on or about                          Monday, 14 December
Share certificates posted to certificated 
shareholders and accounts credited by CSDP 
or broker to dematerialised shareholders 
electing the share reinvestment alternative 
on or about                                    Thursday, 17 December
Adjustment to shares listed on the JSE 
Limited on or about                              Friday, 18 December

Notes:
1. Shareholders electing the share reinvestment 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 
commencement of trade on Monday, 7 December 2015 and the close of 
trade on Friday, 11 December 2015.

Fractions
Trading in the Strate environment does not permit fractions and 
fractional entitlements. Accordingly, where a shareholder’s 
entitlement to the shares in relation to the share reinvestment 
alternative as calculated in accordance with the formula mentioned 
in this paragraph below gives rise to a fraction of a new share, 
such fraction will be rounded up to the nearest whole number where 
the fraction is greater than or equal to 0,5 and rounded down to the 
nearest whole number where the fraction is less than 0,5.

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 dividendsdistributed 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 distribution 
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 3.30310 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 180 443 587 ordinary 
shares of no par value before any election to reinvest the cash 
distribution.
– Income tax reference number of Safari: 9012/264/14/0.
– The share reinvestment alternative is based on a share price of 875 
cents per Safari share.
– The cash distribution accrued over the 6 month period ended 
30 September 2015 and will be paid out of retained earnings of the 
Company.

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

19 November 2015
Pretoria

Sponsor and corporate adviser: PSG Capital

Date: 19/11/2015 09:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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