| Wed 15 Sep 2010, 8:00 | | REM - Remgro - Apportionment of cost for South African Income Tax Purposes in |
|
REM
REM
REM - Remgro - Apportionment of cost for South African Income Tax Purposes in
Respect of the unbundling of Remgro Limited`s Interest in Trans Hex Limited
Remgro Limited
Incorporated in the Republic of South Africa
Registration number 1968/006415/06
ISIN: ZAE000026480
Share code: REM
("Remgro")
APPORTIONMENT OF COST FOR SOUTH AFRICAN INCOME TAX PURPOSES IN RESPECT OF THE
UNBUNDLING OF REMGRO LIMITED`S INTEREST IN TRANS HEX LIMITED ("TRANS HEX")
1. INTRODUCTION
In the circular issued to holders of Remgro ordinary shares and "B" ordinary
shares ("Remgro Shares") ("Remgro Shareholders"), on Monday, 26 July 2010 (the
"Circular") and the finalisation announcement published on the securities
exchange news service operated by the JSE Limited ("JSE") on Wednesday, 18
August 2010, Remgro Shareholders were informed, inter alia, of the unbundling by
Remgro of its 28.49% shareholding in the issued share capital of Trans Hex to
Remgro Shareholders recorded in the Company`s register as at the close of
business on Friday, 10 September 2010 (the "Unbundling Record Date") (the
"Unbundling").
The Unbundling was completed in terms of section 46 of the Income Tax Act, 1962
(No. 58 of 1962), as amended ("the Tax Act"), and in compliance with Section 90
of the Companies Act (No. 61 of 1973), in the ratio of 5.85 Trans Hex shares
("Trans Hex shares") for every 100 Remgro Shares held on the Unbundling Record
Date.
The purpose of this announcement is to notify Remgro Shareholders of the closing
prices of Trans Hex shares and Remgro Shares on the JSE on the day after the
Unbundling Record Date, and the resultant cost apportionment ratio in which the
cost incurred and/or the 1 October 2001 market value of the Remgro Shares must
be allocated for taxation purposes (the "Apportionment Ratio") to the Trans Hex
shares received in terms of the Unbundling and the Remgro Shares.
2. APPORTIONMENT RATIO AND CLOSING SHARE PRICES
Based on the closing share prices of a Remgro Share and a Trans Hex share on the
JSE on Monday, 13 September 2010 of R105.51 and R3.18, respectively, 0.176% of
the cost and/or 1 October 2001 market value attributed to every 100 Remgro
Shares held by Remgro Shareholders on the Unbundling Record Date must be
allocated to 5.85 Trans Hex shares (i.e. 0.03% per Trans Hex share) received in
terms of the Unbundling for purposes of section 46 of the Tax Act. Remgro
Shareholders must accordingly reduce the cost and/or 1 October 2001 market value
attributed to every 100 Remgro Shares by the amounts so allocated to the 5.85
Trans Hex shares received in terms of the Unbundling.
The potential South African taxation considerations for Remgro Shareholders are
set out in Annexure 5 of the Circular. Should Remgro Shareholders have any
queries regarding the taxation consequences of the Unbundling, it is advised
that they obtain their own tax advice in this regard.
Stellenbosch
15 September 2010
Merchant bank and sponsor to Remgro and Trans Hex
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Attorneys to Remgro
Cliffe Dekker Hofmeyr Incorporated
Independent sponsor
Deloitte & Touche Sponsor Services (Proprietary) Limited
Independent reporting accountants
PricewaterhouseCoopers Inc.
Date: 15/09/2010 08:00:06 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.
