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Declaration and finalisation announcement for the cash distribution and posting of Circular
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 32 cents per share with
the election to reinvest the cash distribution in return for Safari shares in the ratio of 4.21053 new Safari
shares for every 100 Safari shares held.
POSTING OF CIRCULAR
Safari will post a circular to shareholders tomorrow, Wednesday, 16 November 2016 setting out full
particulars relating to the cash distribution with the election to reinvest the cash distribution in return for
Safari shares (“Circular”).
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:
Date
2016
Declaration and finalisation announcement on SENS for the Tuesday, 15 November
cash distribution or share reinvestment alternative
Circular and enclosed forms posted to shareholders Wednesday, 16 November
Last day to trade (“LDT”) cum distribution Tuesday, 6 December
Shares to trade ex distribution Wednesday, 7 December
Listing of maximum possible number of share reinvestment Friday, 9 December
alternative shares commences on the JSE Limited (“JSE”)
Last day to elect to receive the share reinvestment alternative Friday, 9 December
(no late Form A (form of election) will be accepted) at 12:00
(South African time)
Record date Friday, 9 December
Announcement of results of cash distribution and share Monday, 12 December
reinvestment alternative on SENS
Cheques posted to certificated shareholders and accounts Monday, 12 December
credited by CSDP or broker to dematerialised shareholders
electing the cash alternative on
Share certificates posted to certificated shareholders and Wednesday, 14 December
accounts credited by CSDP or broker to dematerialised
shareholders electing the share reinvestment alternative on
Adjustment to shares listed on the JSE Limited on or about Thursday, 15 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 Wednesday, 7
December 2016 and the close of trade on Friday, 9 December 2016.
FRACTIONS
The option to elect the share reinvestment alternative will be based on and be calculated at 4.21053 new
Safari shares for every 100 Safari shares held. The number of shares to which shareholders will become
entitled will be calculated on the following basis:
New Safari ordinary shares = (number of Safari ordinary shares held X 4.21053 ÷ 100)
Trading in the electronic Strate environment does not permit fractions and fractional entitlements in
respect of shares. Accordingly, should a shareholder elect the share reinvestment alternative and should
the application of the abovementioned formula give rise to a fraction of a new share, such fraction will be
rounded down to the nearest whole number, resulting in the allocation of whole shares and a payment to
the shareholder in respect of the remaining cash amount due to that shareholder under the cash
distribution. The remaining cash amount portion will be subject to dividend tax as detailed in the
belowmentioned paragraph.
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 dividends
distributed 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 27.2 cents per share with
the election to reinvest the cash distribution in return for Safari shares in the ratio of 3.57895 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 is186 870 651 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 R7.60 per Safari share.
Shareholders are encouraged to consult their professional advisors should they be in any doubt as to the
appropriate action to take.
JURISDICTION
The distribution of the Circular and/or accompanying documents and the right to elect share reinvestment
alternative shares in jurisdictions other than the Republic of South Africa may be restricted by law and a
failure to comply with any of these restrictions may constitute a violation of the securities laws of any such
jurisdictions. The shares have not been and will not be registered for the purposes of the election under
the securities laws of the United Kingdom, European Economic Area, Canada, United States of America,
Japan or Australia and accordingly are not being offered, sold, taken up, re-sold or delivered, directly or
indirectly, to recipients with registered addresses in such jurisdictions.
15 November 2016
Pretoria
Sponsor and corporate adviser: PSG Capital
Date: 15/11/2016 04:42:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
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