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TON
THGL
TON - Tongaat Hulett - Unbundling of Hulamin - Apportionment of cost for tax
purposes
Tongaat Hulett Limited
(formerly The Tongaat-Hulett Group Limited ("THG"))
(Incorporated in the Republic of South Africa)
(Registration number: 1892/000610/06)
(Share code: TON) & (ISIN: ZAE000096533)
("Tongaat Hulett" or "the company")
UNBUNDLING OF HULAMIN - APPORTIONMENT OF COST FOR TAX PURPOSES
1. Introduction
Tongaat Hulett shareholders are referred to the circular dated 18 May 2007
("circular") which related to, inter alia, the unbundling of Hulamin Limited
("Hulamin") and distribution of the shares in Hulamin to Tongaat Hulett
shareholders recorded in the register as at the close of business on Friday, 29
June 2007 ("the record date") to be effected by way of a distribution in specie
in terms of Section 46 of the Income Tax Act, 1962 (Act 58 of 1962), as amended,
in the ratio of one Hulamin share for every Tongaat Hulett share held on the
record date. This unbundling of Hulamin shares was approved subject to the
condition precedent that Hulamin is listed on the JSE Limited ("JSE"). Hulamin
was listed and its shares commenced trade on the JSE with effect from the
opening of business on Monday, 25 June 2007. The Tongaat-Hulett Group Limited`s
name has been changed to "Tongaat Hulett Limited" and this change of name became
effective on the JSE with effect from Monday, 25 June 2007.
The purpose of this announcement is to notify Tongaat Hulett shareholders of the
ratio to be used in the apportionment for tax purposes of the cost of a THG
share between the Tongaat Hulett share after the unbundling ("Tongaat Hulett
share") and the Hulamin share received in terms of the unbundling ("Hulamin
share"). A summary of the South African tax considerations was set out on page
30 of the circular.
2. Apportionment ratio
The ratio of the respective market values of a Tongaat Hulett share and a
Hulamin share on the JSE as at 17:00 on Tuesday, 26 June 2007, being the day
after the listing date, was 73.61% relating to a Tongaat Hulett share and 26.39%
relating to a Hulamin share ("the apportionment ratio").
The apportionment ratio is to be used to apportion the cost of a THG share
between a Tongaat Hulett share and a Hulamin share for the determination of
profits and losses, of a capital or trading nature, derived on any future
disposals of Tongaat Hulett shares or Hulamin shares.
In determining the base cost for the Tongaat Hulett shares and Hulamin shares
for capital gains tax purposes, shareholders are deemed to have acquired both
the Tongaat Hulett shares and the Hulamin shares at a combined cost equal to the
initial expenditure allowable for capital gains tax purposes in acquiring the
THG shares. Where the THG shares were acquired before 1 October 2001 the base
cost will, broadly speaking, either be the market value of the THG shares on 1
October 2001 (which was R41.57 in respect of each THG share), the time-
apportionment base cost or a cost equal to the amount of 20% of the eventual
disposal proceeds. For example, if the THG shares were acquired before 1
October 2001 and should shareholders elect to determine this base cost on the
market value of R41.57 per THG share on 1 October 2001, such market value would
be apportioned as R30.60 per Tongaat Hulett share and R10.97 per Hulamin share
by applying the apportionment ratio.
Tongaat
27 June 2007
Merchant bank and transaction sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Sponsor
INVESTEC BANK LIMITED
Date: 27/06/2007 13:50:00 Produced by the JSE SENS Department.
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