NTC NTCP
NTC
NTCP - Netcare - 6 500 000 Cumulative, Non-Redeemable, Non-Participating, Non-
Convertible Preference Shares
NETWORK HEALTHCARE HOLDINGS LIMITED
Incorporated in the Republic of South Africa
Registration No. 1996/008242/06
JSE Code - preference shares: NTCP
ISIN number: ZAE000081121
("Netcare" or the "Company")
6 500 000 CUMULATIVE, NON-REDEEMABLE, NON-PARTICIPATING, NON-CONVERTIBLE
PREFERENCE SHARES ("PREFERENCE SHARES")
IMPLICATIONS OF 2007 / 2008 BUDGET SPEECH
The introduction in 2008 of withholding tax on dividends and the elimination of
STC (Secondary Tax on Companies) on a phased basis have been proposed as
part of the recent budget presentation. The text of draft legislation
giving effect to these proposed changes has not yet been released.
A number of enquiries have been received from preference shareholders as to
whether Netcare will increase preference dividends in view of the
anticipated negative impact on preference shareholders of the new dividend
tax, while Netcare is expected to benefit from the proposed abolition of
STC. The purpose of this announcement is to inform Netcare preference
shareholders that to the extent that the proposed changes in the tax
legislation result in the preference dividends being taxable in their hands
and in a reduced cost to the Company in servicing the preference shares, it
would be the intention of the Company to pass on the benefit of the reduced
cost to the preference shareholders.
To the extent that any increase in the preference share dividend rates, to
compensate preference shareholders for this new tax, may require an
amendment to the Company`s Articles, is a matter which would need to be
considered in due course by both the ordinary and preference shareholders
once further information regarding the legislation which will give effect
to the proposed changes, becomes available.
A further announcement in this regard will be made once more detailed
information on the proposed legislation is published.
JOEL WOLPERT
Company Secretary
Tel No: (011) 301-0213
Fax No: (011) 301-0481
E-mail joel.wolpert@netcare.co.za
28 March 2007
Sponsor
Merrill Lynch South Africa (Pty) Limited
Date: 28/03/2007 12:49:51 Produced by the JSE SENS Department.
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