LIFE HEALTHCARE GROUP HOLDINGS LIMITED - Ratio applicable to the scrip distribution

Release Date: 12/06/2018 10:37
Code(s): LHC
 
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Ratio applicable to the scrip distribution

LIFE HEALTHCARE GROUP HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 2003/002733/06)
ISIN: ZAE000145892
Share Code: LHC
(“Life” or “the Company”)

RATIO APPLICABLE TO THE SCRIP DISTRIBUTION

Shareholders are referred to the Company’s unaudited interim
financial results for the six months ended 31 March 2018,
published on the Stock Exchange News Service (“SENS”) on 1 June
2018, in which they were advised of the Company’s declaration of
an interim distribution of fully-paid Life ordinary shares of
R0.000001 each (“the Scrip Distribution”) to ordinary shareholders
(“Shareholders”) recorded in the register of the Company at the
close of business on the Record Date, being Friday, 22 June 2018
(“the Record Date”).

Shareholders will, however, be entitled to elect to receive a cash
dividend of 38 cents per ordinary share of R0.000001 each held on
the Record Date in respect of all or part of their ordinary
shareholding, instead of the Scrip Distribution (“the Cash
Dividend”).

A circular setting out the terms of the Scrip Distribution and
Cash Dividend alternative, including a Form of Election, was
posted to shareholders on Tuesday,5 June 2018.

The Cash Dividend will be paid only to those:

       -   certificated Shareholders whose Forms of Election to
           receive the Cash Dividend, in respect of all or part of
           their shareholding, are received by the Transfer
           Secretaries on or before 12h00 on Friday, 22 June 2018;
           and
       -   dematerialised Shareholders who have instructed their
           CSDP or broker accordingly and in the manner and time
           stipulated in their agreement with such CSDP or broker.

The number of Scrip Distribution shares to which each Shareholder
will become entitled pursuant to the Scrip Distribution (to the
extent that such Shareholder has not elected to receive the Cash
Dividend) will be determined by reference to such Shareholder’s
ordinary shareholding in Life (at the close of business on the
Record Date) in relation to the ratio that 38 cents multiplied by
1.025 bears to 2746 cents, representing the volume weighted
average price of an ordinary Life share traded on the JSE during
the 15-day trading period ending on Monday, 11 June 2018. The
application of the 1.025 factor in the Scrip Distribution pricing
mechanism is intended to incorporate a 2.5% discount on the 15-day
VWAP for Shareholders not electing to receive the Cash Dividend
alternative. The ratio of Scrip Distribution shares to which each
Shareholder will become entitled pursuant to the Scrip
Distribution (to the extent that such Shareholder has not elected
to receive the Cash Dividend) is therefore 1.41843 Scrip
Distribution shares for every 100 ordinary shares held on the
Record Date.

Where the application of this ratio gives rise to a fraction of an
ordinary share, such fraction will be rounded down to the nearest
whole number, resulting in allocations of whole ordinary shares
and a cash payment for the fraction.

The applicable cash payment will be determined with reference to
the VWAP of an ordinary Life share traded on the JSE on Wednesday,
20 June 2018, (being the day on which an ordinary Life share
begins trading ‘ex’ the entitlement to receive the Scrip
Distribution or the Cash Dividend alternative), discounted by 10%.

The applicable cash payment will be announced on SENS on Thursday,
21 June 2018.

Example of Scrip Distribution entitlement:
This example assumes that a Shareholder holds 100 ordinary shares
at the close of business on the Record Date and does not elect to
receive the Cash Dividend in respect of all or part of their
shareholding.

New ordinary share entitlement =
100 x 38 cents x 1.025
______________________
2746 cents
= 1.41843 new shares
(then apply the Rounding Provision described above)
= 1 Scrip Distribution share in respect of the 100 ordinary shares
held.

Illovo
12 June 2018

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

Date: 12/06/2018 10:37:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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