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CASTLEVIEW PROPERTY FUND LIMITED - Announcement of dividend reinvestment price and confirmation of finalisation information

Release Date: 26/11/2019 09:27
Code(s): CVW     PDF:  
 
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Announcement of dividend reinvestment price and confirmation of finalisation information

CASTLEVIEW PROPERTY FUND LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 2017/290413/06)
JSE share code: CVW
ISIN: ZAE000251633
(Approved as a REIT by the JSE)
(“Castleview”)


ANNOUNCEMENT OF DIVIDEND REINVESTMENT PRICE AND CONFIRMATION OF FINALISATION INFORMATION


Further to the declaration of a cash dividend of 18.26000 cents per share (the “cash dividend”) with an election to
reinvest the cash dividend in return for Castleview shares (the “dividend reinvestment alternative”), announced on
SENS on Tuesday, 19 November 2019 (the “declaration announcement”), the price per share, as determined on
Tuesday, 26 November 2019 (the “finalisation date”), applicable to Castleview shareholders electing the dividend
reinvestment alternative and recorded in the register on Friday, 6 December 2019 (i.e. the “record date”), is R5.07 per
share (the “reinvestment price”). The reinvestment price is equal to the net asset value per Castleview share as at 
31 August 2019.

The ratio in respect of the dividend reinvestment alternative is 3.60158 shares for every 100 shares held on the record
date by South African resident shareholders exempt from dividend tax and 2.88126 shares for every 100 shares held on
the record date by non-resident shareholders subject to dividend tax at 20%.

Where a shareholder’s entitlement to the shares in relation to the dividend reinvestment alternative, calculated with
reference to the above share ratio, gives rise to an entitlement to a fraction of a new share, such fraction will be rounded
down to the nearest whole number with the cash balance of the dividend being retained by the shareholder.

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 Castleview shareholders dated and posted on Tuesday, 19 November 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 18.26000 cents per share.

Dividend tax implications for non-resident shareholders

Dividends received from a REIT by a non-resident shareholder will be 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 14.60800 cents per share.

Due to the fact that the cash dividend or dividend reinvestment 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.
Illustrative example on the application of rounding and the impact of dividend tax

The application of the rounding principle of rounding down to the nearest whole number and 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)                                                         18.26000                   18.26000
Dividend tax per share (cents)                                                            -                   3.652000
Total net dividend per share (cents)                                               18.26000                   14.60800
Number of shares held                                                                   100                        100
Reinvestment price (R)                                                                 5.07                       5.07
Total amount available for reinvestment (R)                                        18.26000                   14.60800
Number of shares entitled to in terms of the dividend reinvestment                  3.60158                    2.88126
alternative 
Rounded number of shares issued in terms of dividend                                      3                          2
reinvestment alternative
Total amount payable for shares acquired in terms of the dividend                  15.21000                   10.14000
reinvestment alternative (R)
Balance of distribution retained by shareholder (R)                                 3.05000                    4.46800

Trading of Castleview shares

Shareholders are advised that, as per the published timetable, the last date to trade is Tuesday, 3 December 2019 and the
shares will trade ex-dividend on Wednesday, 4 December 2019.

As published in the declaration announcement, shareholders electing the dividend reinvestment 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, 6 December 2019, due to the fact that settlement of the shares will be three days after the record
date, being Wednesday, 11 December 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 reinvestment alternative is 12:00 (South
African time) on Friday, 6 December 2019. No action is required if you wish to receive the cash dividend.

The salient dates, timetable and all other information relating to the dividend (including the tax implications) and
dividend reinvestment alternative disclosed in the declaration announcement remain unchanged.

26 November 2019


Corporate Advisor and Designated Advisor
Java Capital

Date: 26-11-2019 09:27:00
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