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GROWTHPOINT PROPERTIES LIMITED - Announcement of Dividend Re-Investment Price and Confirmation of Finalisation Information

Release Date: 20/09/2019 16:20
Code(s): GRT     PDF:  
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Announcement of Dividend Re-Investment Price and Confirmation of Finalisation Information

Growthpoint Properties Limited
Approved as a REIT by the JSE
(Incorporated in the Republic of South Africa)
(Registration number 1987/004988/06)
Share code: GRT ISIN ZAE000179420
(“Growthpoint”)


ANNOUNCEMENT OF DIVIDEND RE-INVESTMENT PRICE AND CONFIRMATION OF FINALISATION INFORMATION


Further to the announcement of the declaration of the final dividend and dividend re-investment alternative
included in Growthpoint’s results (“Results Announcement”) in respect of the year ended 30 June 2019
released on the Stock Exchange News Service (“SENS”) on Wednesday, 11 September 2019, the price
applicable to Growthpoint shareholders electing the dividend re-investment alternative and recorded in the
register on Friday, 4 October 2019 (i.e. the ‘Record Date’), is R21.75 (“Re-investment Price”).
The Re-investment Price is based on a 4.95% discount to the spot price (ex the dividend for the six months
ended 30 June 2019 of 112.3 cents per share), as at the close of business on Thursday, 19 September 2019.
The Re-investment Price equates to a cum price of R22.80, which represents a discount of 4.88% to the
5-day volume weighted average cum price of R23.97 and a discount of 4.72% to the closing price of R23.93
on Thursday, 19 September 2019.


Dividend withholding tax (“Dividend Tax”) implications

Dividend Tax implications for South African resident shareholders
Dividends received from a Real Estate Investment Trust (“REIT”) are exempt from Dividend Tax in the hands
of South African resident shareholders provided that the shareholders have provided the requisite declaration
as to residence as detailed in paragraph 5 of the circular to Growthpoint shareholders dated and posted on
Monday, 16 September 2019 (the “Circular”). South African resident shareholders, who have submitted the
requisite documentation and are exempt from Dividend Tax, will accordingly receive a net dividend of 112.3
cents per share.

Dividend Tax implications for non-resident shareholders
Dividends received from a REIT by a non-resident shareholder are subject to Dividend Tax at 20%, 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. A reduced dividend withholding
rate in terms of the applicable DTA may only be relied upon if the non-resident shareholder has provided the
requisite documentation as detailed in paragraph 5 of the Circular. Non-resident shareholders who have
submitted the requisite documentation, and assuming that a Dividend Tax rate of 20% is applicable, will
accordingly receive a net dividend of 89.84 cents per share.
The impact of Dividend Tax on shareholders has been illustrated by way of the example below:


                                                         South African resident                 Non-resident
                                                          shareholders exempt         shareholders subject to
                                                             from Dividend Tax           Dividend Tax at 20%
  Dividend per share (cents)                                           112.30000                     112.30000
  Dividend Tax per share (cents)                                       (0.00000)                    (22.46000)
  Total net dividend per share (cents)                                 112.30000                      89.84000
  Re-investment Price (R)                                                  21.75                         21.75
  New shares issued per 100 shares                                       5.16322                       4.13057


Due to the fact that the cash dividend or dividend re-investment alternative may have tax implications for
resident and non-resident shareholders, shareholders are encouraged to consult their professional advisors
should they be in any doubt as to the appropriate action to take.
Other information:
    - The number of ordinary issued shares of Growthpoint comprises 2,970,981,288 ordinary shares of no
        par value before any election to re-invest the cash dividend.
    - Income Tax Reference Number of Growthpoint: 9375/077/71/7.

Fractions
Trading in the Strate environment does not permit fractions and fractional entitlements. Where a
shareholder’s entitlement to the shares in relation to the share re-investment alternative as calculated in
accordance with the formula mentioned above gives rise to a fraction of a new share, such fraction will be
rounded down to the nearest whole number resulting in allocations of whole securities and a cash payment
for the fraction.

Trading of Growthpoint shares
As published in the Results Announcement, shareholders electing the share alternative are once again 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, being Friday, 4 October 2019 due to the fact that settlement of the shares will be three days after
Record Date, being Wednesday, 9 October 2019 which differs from the conventional one day after Record
Date settlement process.
Shareholders are reminded that the last day to elect to receive the dividend re-investment alternative is
12:00 (South African time) on Friday, 4 October 2019.
Shares may not be dematerialised or rematerialised between commencement of trade on Wednesday,
2 October 2019 and the close of trade on Friday, 4 October 2019.
The salient dates, timetable and all other information relating to the cash dividend and dividend re-
investment alternative disclosed in the Results Announcement remain unchanged.


Foreign shareholders
The distribution of the Circular and/or accompanying documents and the right to elect share 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 or EEA, 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.

Sandton
20 September 2019




Corporate Advisor and Sponsor to Growthpoint
Investec Bank Limited

Date: 20/09/2019 04:20:00
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