CASTLEVIEW PROPERTY FUND LIMITED - Announcement of dividend reinvestment price and confirmation of finalisation information2020/06/30 10:30:00
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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” or “the Company”) ANNOUNCEMENT OF DIVIDEND REINVESTMENT PRICE AND CONFIRMATION OF FINALISATION INFORMATION Further to the declaration of a cash dividend of 16.21000 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, 23 June 2020 (the “declaration announcement”), the price per share, as determined on Tuesday, 30 June 2020 (the “finalisation date”), applicable to Castleview shareholders electing the dividend reinvestment alternative and recorded in the register on Friday, 10 July 2020 (i.e. the “ record date”), is R5.15000 per share (the “reinvestment price”). The reinvestment price represents the net asset value per share at 29 February 2020, as reflected in the Company’ provisional summarised reviewed consolidated financial statements for the twelve months ended 29 February 2020, released on SENS on 12 June 2020. The ratio in respect of the dividend reinvestment alternative is 3.14757 shares for every 100 shares held on the record date by South African resident shareholders exempt from dividend tax and 2.51806 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, 23 June 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 16.21000 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 12.96800 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 from dividend tax subject to dividend tax at 20% Dividend per share (cents) 16.21000 16.21000 Dividend tax per share (cents) - 3.24200 Total net dividend per share (cents) 16.2100 12.96800 Number of shares held 100 100 Reinvestment price (R) 5.1500 5.1500 Total amount available for reinvestment (R) 16.21000 12.96800 Number of shares entitled to in terms of the dividend reinvestment 3.14757 2.51806 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 15.45000 10.30000 reinvestment alternative (R) Balance of distribution paid to shareholder (R) 0.76000 2.66800 Trading of Castleview shares Shareholders are advised that, as per the published timetable, the last date to trade is Tuesday, 7 July 2020 and the shares will trade ex-dividend on Wednesday, 8 July 2020. 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, 10 July 2020, due to the fact that settlement of the shares will be three days after the record date, being Wednesday, 15 July 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 reinvestment alternative is 12:00 (South African time) on Friday, 10 July 2020. 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. 30 June 2020 Corporate Advisor and Designated Advisor Java Capital Date: 30-06-2020 10:30:00 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.