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HAMMERSON PLC - Dividend Currency Conversion Announcement

Release Date: 22/08/2017 10:31
Code(s): HMN     PDF:  
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Dividend Currency Conversion Announcement

Hammerson plc
(Incorporated in England and Wales)
(Company number 360632)
LSE share code: HMSO      JSE share code: HMN
ISIN: GB0004065016
(“Hammerson” or “the Company”)


Dividend Currency Conversion Announcement
Dividend No. 133
22 August 2017


On 26 July 2017, the Company declared an interim dividend of 10.70 pence per share (“the Dividend”) for the period
ended 30 June 2017. The Dividend will be subject to a 20% UK withholding tax unless exemptions apply and will be
treated as a Property Income Distribution (“PID”).

The Dividend Reinvestment Plan (“DRIP”) will be available for those shareholders who wish to receive the Dividend in
the form of shares. The Dividend is payable on Monday, 9 October 2017 to shareholders registered on the UK principal
register (“UK Shareholders”) and the South African branch register (“SA Shareholders”) who have elected to receive
the Dividend in cash. The DRIP purchases settlement date (subject to market conditions and the purchase of shares
in the open market) is Monday, 16 October 2017. The Record Date for both UK Shareholders and SA Shareholders is
at the close of business on Friday, 1 September 2017.

The Dividend should be regarded as a “foreign dividend” for South African income and dividends tax purposes.

Shareholders receiving the Dividend in cash

The Company confirms that the South African Rand exchange rate for the Dividend will be ZAR 17.12290 to GBP 1.
The Dividend is payable in South African Rand to SA Shareholders. Accordingly, shareholders who do not elect for
the DRIP will be paid as follows:

                                                                     UK Shareholders                 SA Shareholders
 PID
                                                                          (GBP pence)                     (ZAR cents)

 Gross amount of PID                                                            10.70p                183.21503 cents

 Less 20% UK withholding tax/20% SA dividends tax*                                2.14p                36.64301 cents

 Net PID dividend payable                                                         8.56p               146.57202 cents

*Please note that this is the net position after SA Shareholders have claimed back 5% from Her Majesty’s Revenue &
Customs (“HMRC”) under the double tax agreement between the United Kingdom and South Africa.

Cash PIDs

A 20% UK withholding tax will be deducted from cash PIDs. The Company will account to HMRC in sterling for the
total UK withholding tax deducted.
SA dividends tax, at the rate of 20% will apply to cash PIDs and dividends payable by the Company unless the beneficial
owner of the dividend is exempt from SA dividends tax (e.g. if it is a South African resident company). Under the
double tax agreement between the UK and SA (“the DTA”), the maximum tax payable in the UK is 15%. South African
resident shareholders are therefore entitled to claim the excess of 5% from HMRC. As SA Shareholders are entitled to
reclaim this excess from HMRC, the maximum rebate allowable in respect of the UK withholding tax against the SA
dividends tax is 15%, which means that the Company will have to withhold a further 5% from the dividend in South
Africa to bring the total dividends tax to 20%. In summary, therefore, 20% will be withheld in the UK, a further 5% will
be withheld in SA (where appropriate), but South African resident shareholders will be entitled to claim back 5% from
HMRC which will bring the overall total to 20%.

Shareholders electing for the DRIP

SA Shareholders electing for the DRIP should note that, in respect of fractional entitlements that may arise, all
allocations of shares will be rounded down to the nearest whole number, and any residual amounts that are not used
to reinvest in shares (as a result of rounding down) will be paid in cash.

It is the Company’s understanding that the residual cash paid to SA Shareholders who have made DRIP elections would
already have been taxed prior to the calculation of the number of shares and any residual cash owing to such SA
Shareholders. Accordingly, no further tax should be payable on the cash paid to SA Shareholders as a result of any
fractional entitlements.

The above information and the guidelines on the taxation of dividends are provided as a general guide based on the
Company’s understanding of the law and practice currently in place. Any shareholder who is in any doubt as to their
tax position should seek independent professional advice.

 Registered Office                        UK Registrars                           SA Transfer Secretaries
 Kings Place                              Capita Asset Services                   Computershare Investor Services
 90 York Way                              The Registry                            Proprietary Limited
 London                                   34 Beckenham Road                       (Registration
 N1 9GE                                   Beckenham                               number 2004/003647/07)
 United Kingdom                           Kent                                    1st Floor, Rosebank Towers,
                                          BR3 4TU                                 15 Biermann Avenue, Rosebank,
                                          United Kingdom                          2196
                                                                                  South Africa
                                                                                  (PO Box 61051, Marshalltown, 2107,
                                                                                  South Africa)


Hammerson has its primary listing on the London Stock Exchange and a secondary inward listing on the Johannesburg
Stock Exchange.

Joint Sponsors:

Deutsche Securities (SA) Proprietary Limited

Java Capital

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