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OCTODEC INVESTMENTS LIMITED - Finalisation announcement for the dividend reinvestment alternative

Release Date: 12/05/2016 13:13
Code(s): OCT     PDF:  
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Finalisation announcement for the dividend reinvestment alternative

OCTODEC INVESTMENTS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1956/002868/06)
Share code: OCT ISIN: ZAE000192258
("Octodec" or “the company”)
REIT status approved

Finalisation announcement for the dividend reinvestment alternative

Shareholders are referred to Octodec’s reviewed condensed consolidated interim results for the six months
ended 29 February 2016 released on SENS on Tuesday, 3 May 2016 (“the results announcement”) which
included reference to a cash dividend in the amount of 98.4 cents per Octodec share (“the cash dividend”)
with the option to re-invest the cash dividend (“the dividend reinvestment alternative”). Full details of the
dividend reinvestment alternative were also set out in a circular posted to shareholders on 3 May 2016 (“the
circular”).

The price applicable to an Octodec shareholder electing the dividend reinvestment alternative is R22.67715
(“the reinvestment price”), being the five-day volume weighted average traded price (ex-dividend) of Octodec
shares prior to the finalisation date of 12 May 2016.

The reinvestment price represents a 4.16% discount to the cum dividend five-day volume weighted average
traded price of Octodec prior to 12 May 2016 of R23.66 and a 4.64% discount to the cum dividend thirty-day
volume weighted average traded price of Octodec shares prior to 12 May 2016 of R23.78.

Dividend withholding tax (“Dividend Tax”) implications

Dividend Tax implications for South African resident shareholders

Dividends are exempt from Dividend Tax in the hands of South African resident shareholders provided that
South African resident shareholders have submitted to the CSDP or broker, as the case may be, in respect of
uncertificated shares, or the transfer secretaries in respect of certificated shares, the requisite declaration as
fully set out in paragraph 5 of the circular. Accordingly, South African resident shareholders who have
submitted the requisite documentation and are exempt from Dividend Tax, will receive a net dividend of 98.4
cents per Octodec share.

Dividend Tax implication for non-resident shareholders

Dividends received by non-resident shareholders are subject to Dividend Tax unless the rate is reduced in
terms of any applicable agreement for the avoidance of double taxation between South Africa and the country
of residence of the non-resident shareholders, provided that the non-resident shareholders have submitted to
the CSDP or broker, as the case may be, in respect of uncertificated shares, or the transfer secretaries in
respect of certificated shares, the requisite declarations as fully set out in paragraph 5 of the circular.
Accordingly, if Dividend Tax is withheld at the current rate of 15%, the net dividend amount due to non-
resident shareholders is 83.64 cents per Octodec share.

Shareholders are encouraged to consult their professional advisors should they be in any doubt as to the
appropriate action to take.
Impact of Dividend Tax on Octodec shareholders

An example illustrating the impact on South African resident shareholders and non-resident shareholders
electing to either receive the cash dividend or the dividend reinvestment alternative is set out below:


                                                               South African resident              Non-resident
                                                                shareholders exempt        shareholders subject
                                                                  from Dividend Tax             to Dividend Tax

Cash dividend

Dividend paid per share (cents)                                                 98.40                      98.40

Dividend Tax of 15% per share (cents)                                               -                      14.76

Net dividend per share (cents)                                                  98.40                      83.64

Dividend reinvestment alternative

Reinvestment price (R)                                                       22.67715                   22.67715

New Octodec shares issued per 100 Octodec shares held                         4.33917                    3.68829

Additional information

-    As at 12 May 2016, the ordinary issued share capital of Octodec consists of 252 321 784 shares; and
-    the income tax reference number of Octodec is 9925/033/71/5.

Timetable

The salient dates and times for the cash dividend and the dividend reinvestment alternative are set out in the
results announcement and the circular and remain unchanged.

Shareholders electing the dividend reinvestment alternative are alerted to the fact that the new shares will be
listed on the Last day to trade (“LDT”) + 3 and these shares can only be traded on LDT + 3 because settlement
of the shares will be three days after the record date, which differs from the conventional one day after record
date settlement process.

Fractions

Trading in the Strate environment does not permit fractions or fractional entitlements. Accordingly, where a
shareholder’s entitlement to the shares in relation to the dividend reinvestment alternative gives rise to a
fraction of a new share, such fraction will be rounded down to the nearest whole number and the cash balance
will be paid to the shareholder.

12 May 2016

Investment bank, corporate advisor and sponsor to Octodec
Nedbank Corporate and Investment Banking

Date: 12/05/2016 01:13:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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