To view the PDF file, sign up for a MySharenet subscription.

MEDICLINIC INTERNATIONAL PLC - Tax treatment of ordinary share dividend for shareholders on the South African Register

Release Date: 29/06/2017 15:00
Code(s): MEI     PDF:  
Wrap Text
Tax treatment of ordinary share dividend for shareholders on the South African Register

Mediclinic International plc
(Incorporated in England and Wales)
Company Number: 08338604
LSE Share Code: MDC
JSE Share Code: MEI
NSX Share Code: MEP
ISIN: GB00B8HX8Z88
LEI: 2138002S5BSBIZTD5I60
South African income tax number: 9950122714
(“Mediclinic”, the “Company” or the “Group”)

29 June 2017

TAX TREATMENT OF ORDINARY SHARE DIVIDEND FOR SHAREHOLDERS ON THE
SOUTH AFRICAN REGISTER

Background

Shareholders on the South African register of the Company are referred to Mediclinic’s
announcement of the results for the year ended 31 March 2017 and declaration of dividend
announcement released on the Stock Exchange News Service and on the Regulatory News
Service on 24 May 2017, confirming that the Board of Directors of Mediclinic had proposed a
final dividend from retained earnings of 4.70 pence per ordinary share for the year ended 31
March 2017 for approval by the Company’s shareholders at the annual general meeting on
Tuesday, 25 July 2017.

The final dividend will be paid on Monday, 31 July 2017 to all ordinary shareholders who are
on the register of members at the close of business on the record date of Friday, 23 June 2017.

Shareholders on the South African register will be paid the ZAR cash equivalent of 80.60500
cents (64.48400 cents net of dividend withholding tax) per share. A dividend withholding tax of
20% will be applicable to all shareholders on the South African register who are not exempt
therefrom. The ZAR cash equivalent has been calculated using the following exchange rate:
£1: ZAR17.15, being the five-day average ZAR/GBP exchange rate on Friday, 19 May 2017 at
3:00pm GMT Bloomberg.

Tax treatment for shareholders on the South African register

South African tax resident shareholders on the South African register:

In terms of the Company’s Dividend Access Trust structure, eligible South African tax resident
shareholders on the South African register set out below will receive a component of the
dividend, namely 68.64369 cents per share, from the Dividend Access Trust and therefore
regarded as a local South African dividend, with the remaining component, namely 11.96131
cents per share, being received from the Company and therefore regarded as a foreign non-
South African dividend. For purposes of South African dividend withholding tax, the entire
dividend of 80.60500 cents per share is taxable at a rate of 20%, unless an applicable
exemption applies:

1. in the case of shares held in certificated form, eligible shareholders who are registered
   on the South African register with an address in South Africa (other than PLC
   Nominees Proprietary Limited (or any successor entity through which shares held in
   dematerialised form are held)); and

2. in the case of shares held in dematerialised form, in respect of whom the South
   African transfer secretaries of the Company have determined, in good faith and by
   reference to the information provided to them by the eligible shareholders and/or their
   brokers and/or central securities depository participants, that such eligible
   shareholders are either (i) tax resident in South Africa or (ii) have an address in South
   Africa and have not expressly indicated that they are not tax resident in South Africa
   as at the dividend record date.

Non-South African tax resident shareholders on the South African register:

Non-South African tax resident shareholders on the South African register will be paid the
dividend by the Company in the usual way and not through the Dividend Access Trust. The
entire dividend of 80.60500 cents per share payable to such shareholders will therefore be
regarded as a foreign dividend and exempt from South African dividend withholding tax,
provided that the relevant exemption forms have been completed and submitted as prescribed.

ABOUT MEDICLINIC INTERNATIONAL PLC

Mediclinic is an international private healthcare group with operating platforms in Southern
Africa (South Africa and Namibia), Switzerland and the United Arab Emirates. Its core purpose
is to enhance the quality of life of patients by providing acute care, specialist-orientated, multi-
disciplinary healthcare services. Mediclinic also holds a 29.9% interest in Spire Healthcare
Group plc, a LSE listed and UK-based private healthcare group.

Mediclinic comprises 74 hospitals and 37 clinics. Mediclinic Southern Africa operates 49
hospitals and 2 day clinics throughout South Africa and 3 hospitals in Namibia with more than
8 000 inpatient beds in total; Hirslanden operates 16 private acute care facilities and 4 clinics
in Switzerland with more than 1 600 inpatient beds; and Mediclinic Middle East operates 6
hospitals and 31 clinics with more than 700 inpatient beds in the United Arab Emirates.

The platforms' contributions to Group revenue for the financial year ended 31 March 2017 were
48% by Hirslanden, 28% by Mediclinic Southern Africa and 24% by Mediclinic Middle East.

During February 2016, the combination of the Company (previously named Al Noor Hospitals
Group plc), with operations mainly in Abu Dhabi in the United Arab Emirates, and Mediclinic
International Limited was completed. Mediclinic International Limited was a South African
based international private healthcare group founded in 1983 and listed on the JSE, the South
African stock exchange, since 1986, with operations in South Africa, Namibia, Switzerland and
the United Arab Emirates (mainly in Dubai). The combination resulted in the renaming of the
enlarged group to Mediclinic International plc.

Mediclinic has a primary listing on the Main Market of the LSE, with secondary listings on the
JSE in South Africa and the NSX in Namibia.

For further information, please contact:
Capita Company Secretarial Services Limited
Victoria Dalby
+44 (0)207 954 9600

Investor Relations, Mediclinic International plc
James Arnold, Head of Investor Relations
ir@mediclinic.com
+44 (0)20 3786 8181

Media queries
FTI Consulting
Brett Pollard/Debbie Scott (UK)
+44 (0)20 3727 1000
Frank Ford (South Africa)
+27 (0)21 487 9000

Registered address: 1st Floor, 40 Dukes Place, London, EC3A 7NH, United Kingdom
Website: www.mediclinic.com
Corporate broker: Morgan Stanley & Co International plc
JSE sponsor: RAND MERCHANT BANK (A division of FirstRand Bank Limited)
NSX sponsor: Simonis Storm Securities (Pty) Ltd

Date: 29/06/2017 03:00:00 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.

Share This Story