To view the PDF file, sign up for a MySharenet subscription.

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

Release Date: 24/11/2020 10:58
Code(s): GRT     PDF:  
Wrap Text
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


Further to the announcement of the declaration of the final dividend and dividend re-investment alternative
in respect of the year ended 30 June 2020 released on the Stock Exchange News Service (“SENS”) on Monday,
5 October 2020, the price applicable to Growthpoint shareholders electing the dividend re-investment
alternative and recorded in the register on Friday, 4 December 2020 (i.e. the ‘Record Date’), is R11.55 (“Re-
investment Price”).

The Re-investment Price is based on a 3.2% discount to the spot price (ex the dividend for the year ended 30
June 2020 of 40 cents per share), as at the close of business on Monday, 23 November 2020.

The Re-investment Price equates to a cum price of R11.95, which represents a discount of 2.1% to the
5-day volume weighted average cum price of R12.21 and a discount of 3.0% to the closing price of R12.32 on
Monday, 23 November 2020.

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 November 2020 (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 40
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 32 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)                                              40.00                        40.00
  Dividend Tax per share (cents)                                           0.00                       (8.00)
  Total net dividend per share (cents)                                    40.00                        32.00
  Re-investment Price (R)                                                 11.55                        11.55
  New shares issued per 100 shares                                         3.46                         2.77

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 3,380,829,715 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.

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 December 2020 due to the fact that settlement of the shares will be three days after
Record Date, being Wednesday, 9 December 2020 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 December 2020.

Shares may not be dematerialised or rematerialised between commencement of trade on Wednesday,
2 December 2020 and the close of trade on Friday, 4 December 2020.

The salient dates, timetable and all other information relating to the cash dividend and dividend re-
investment alternative disclosed in the Dividend Declaration 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.

24 November 2020

Corporate Advisor and Sponsor to Growthpoint
Investec Bank Limited

Date: 24-11-2020 10:58:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.

Share This Story