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REINET INVESTMENTS S.C.A - Reinet Securities SA Exchange rate applicable for dividend payable in respect of DRs

Release Date: 29/08/2017 11:05
Code(s): REI     PDF:  
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Reinet Securities SA – Exchange rate applicable for dividend payable in respect of DRs

Reinet Investments S.C.A. (‘Reinet’)
To holders of depository receipts issued by Reinet Securities SA,
in respect of Reinet Investments S.C.A. ordinary shares (‘DRs’)
traded on the Johannesburg Stock Exchange under the ISIN number
CH0045793657
Depository Receipt Code: REI

REINET SECURITIES SA – EXCHANGE    RATE   APPLICABLE   FOR   DIVIDEND
PAYABLE IN RESPECT OF DRs

The dividend payable to holders of DRs is derived from the
dividend to be paid by Reinet to holders of Reinet shares.

The dividend in respect of the DRs is payable to South African
Common Monetary Area residents in South African rand via central
security depository participants in Strate for all dematerialised
holdings and Computershare Investor Services Proprietary Limited
for those on the certificated register.

Reinet has recommended a total dividend of EUR 0.165 per share
from income reserves. It is anticipated that this dividend will be
approved by shareholders of Reinet at the annual general meeting
to be held on Tuesday 29 August 2017 in Luxembourg.

There is no Luxembourg withholding tax payable on dividends which
may be declared by Reinet.

In 2013 Reinet sought clarification from the South African Revenue
Service (‘SARS’) as to the treatment of any dividends to be
declared by Reinet and paid to holders of DRs. SARS confirmed to
Reinet that any such dividends would be treated as ‘foreign
dividends’ as defined in the Income Tax Act No. 58 of 1962.
Accordingly, any such dividends would be subject to South African
dividend withholding tax at 20 per cent in the hands of DR holders
unless those DR holders are otherwise exempt from the tax. Non-
resident holders of DRs are required to fill in the appropriate
SARS declaration form, if they wish to be exempted from the tax.

As DRs trade in the ratio of 10 DRs to each Reinet ordinary share,
the dividend entitlement per DR is as follows:

              Gross dividend    South African     Net dividend in
              per DR            dividend Tax      euros
              in euros          at 20%

              0.016500          (0.003300)        0.013200

The exchange rate applicable for the conversion of euro to South
African rand for payment of the dividend is ZAR 15.74000 : Euro 1.
Accordingly the net dividend payable per DR is 20.77680 ZAR cents,
as set out in the table below:

                  Gross dividend       South African Net dividend
                  per DR               dividend tax   per DR
                  (in ZAR cents)       at 20%         (in ZAR cents)
                                       (in ZAR cents)

Total             25.97100             (5.19420)             20.77680

The timetable for the dividend in respect of the DRs is
anticipated to be as follows:

Last date to trade “cum dividend”           Tuesday, 5 September 2017

Trading commences “ex-dividend” from
the commencement of business on             Wednesday, 6 September 2017

DR dividend record date                     Friday, 8 September 2017

DR dividend payment date                    Friday, 15 September 2017

DR holders may not dematerialise or rematerialise their holding of
DRs between Wednesday, 6 September 2017 and Friday, 8 September
2017, both days inclusive.

DRs are issued subject to the terms of the Deposit Agreement
entered into on 17 October 2008, most recently amended on
15 December 2010. By holding DRs, investors acknowledge that they
are bound by the terms of the Deposit Agreement. Copies of the
Deposit Agreement may be obtained by investors from Reinet
Securities SA or Computershare Investor Services Proprietary
Limited.

Reinet Securities SA may appoint a depository agent or other
parties to assist in the administration of the DR programme and
may provide to such agents such information as it deems to be
appropriate, including information relating to the identity of
holders of DRs.


29 August 2017

Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)

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