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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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