| Wed 9 Apr 2008, 14:37 | | LAB - Labat - Apportionment of cost for taxation p |
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LAB
LAB
LAB - Labat - Apportionment of cost for taxation purposes and renewal of
cautionary announcement
LABAT AFRICA LIMITED
Incorporated in the Republic of South Africa
(Registration number 1986/001616/06)
Share code: LAB ISIN: ZAE000018354
("Labat")
APPORTIONMENT OF COST FOR TAXATION PURPOSES AND RENEWAL OF CAUTIONARY
ANNOUNCEMENT
Introduction
Labat shareholders are referred to the circular dated 25 February 2008
("circular") regarding, inter alia, the unbundling of Total Client Services
Limited ("TCS") and distribution of the shares in TCS to Labat shareholders
recorded in the register as at the close of business on Friday, 11 April 2008
("record date") to be effected by way of distribution in specie in terms of
section 90 of the Companies Act, 1973 (Act 61 of 1973), as amended, and in
accordance with section 46 of the Income Tax Act, 1962 (Act 58 of 1962), as
amended, in the ratio of one TCS share for every Labat share held on the record
date. The conditions precedent relating to the unbundling which included, inter
alia, approval to list TCS shares on JSE Limited ("JSE") were fulfilled and
shareholders were advised of such fulfillment in an announcement dated 27 March
2008. TCS shares commenced trade on the JSE with effect from the opening of
business on Monday, 7 April 2008.
The purpose of this announcement is to notify Labat shareholders of the ratio to
be used in the apportionment for tax purposes of the cost of a Labat share
between the Labat share after the unbundling ("retained Labat share") and a TCS
share received pursuant to the unbundling ("unbundled TCS share"). A summary of
the South African tax considerations was set out on page 16 of the circular.
The apportionment ratio
The ratio of the respective market values of the retained Labat shares and the
unbundled TCS shares on the JSE as at close of trade on Tuesday, 8 April 2008,
being the day after the listing date, was 16.22% relating to the retained Labat
shares and 83.78% relating to the unbundled TCS shares ("apportionment ratio").
The apportionment ratio is to be used to apportion the cost of a Labat share
between a retained Labat share and an unbundled TCS share for the determination
of profits and losses, of a capital or trading nature, derived on any future
disposals of retained Labat shares or unbundled TCS shares.
In determining the base cost for the retained Labat shares and the unbundled TCS
shares for capital gains tax purposes, Labat shareholders are deemed to have
acquired both the retained Labat shares and the unbundled TCS shares on the
dates on which the retained Labat shares were originally acquired. Should Labat
shareholders have any queries regarding the taxation consequences of the
unbundling and the calculation of its cost for taxation purposes, it is
advisable to consult a tax advisor in this regard.
Renewal of cautionary
Further to the cautionary announcement dated 25 February 2008, shareholders are
advised that the de-listing of Labat may have a material effect on the price at
which Labat`s shares trade. Accordingly, shareholders are advised to continue to
exercise caution when trading in Labat shares on the JSE until a further
announcement is made.
9 April 2008
Sponsor
Merchant Sponsors (Proprietary) Limited
Date: 09/04/2008 14:37:50 Produced by the JSE SENS Department.
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