| Wed 24 Nov 2010, 7:16 | | TBS - Tiger Brands - Capital reduction out of share premium and declaration of |
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TBS
TIIH
TBS - Tiger Brands - Capital reduction out of share premium and declaration of
final dividend in respect of the year ended 30 September 2010
Tiger Brands Limited
(Registration number 1944/017881/06)
(Incorporated in the Republic of South Africa)
Share code: TBS
ISIN: ZAE000071080
("Tiger Brands" or "the Company")
CAPITAL REDUCTION OUT OF SHARE PREMIUM AND DECLARATION OF FINAL DIVIDEND IN
RESPECT OF THE YEAR ENDED 30 SEPTEMBER 2010
At the general meeting of shareholders held on 21 June 2010, the directors were
granted the general authority to make a payment to shareholders out of share
premium, in lieu of the final dividend, or part thereof, for the year ended 30
September 2010. Pursuant to this authority, the directors have approved a final
distribution of capital and a final dividend for the year ended 30 September
2010, in aggregate amounting to 476 cents per ordinary share, to Tiger Brands
shareholders recorded in the register on Friday, 14 January 2011, comprising a
cash distribution by way of a reduction of capital out of share premium of 235
cents per share ("the Distribution") and a final dividend of 241 cents per share
out of distributable reserves ("the Dividend").
In compliance with the requirements of Strate, the electronic settlement and
custody system used by the JSE Limited, the Company has determined the following
salient dates for the payment of both the Distribution and the Dividend:
Last day to trade cum the Distribution
and the Dividend Friday, 7 January 2011
Shares commence trading ex the
Distribution and the Dividend Monday, 10 January 2011
Record date Friday, 14 January 2011
Payment date Monday, 17 January 2011
Tiger Brands ordinary shareholders will not be permitted to
dematerialise/rematerialise their shares between Monday, 10 January 2011 and
Friday, 14 January 2011, both days inclusive.
The illustrative pro forma effects of the Distribution set out below have been
prepared to assist Tiger Brands shareholders in assessing the impact of the
Distribution of capital out of share premium on the Net Asset Value per share
("NAV") and Tangible Net Asset Value per share ("TNAV"). The material
assumptions are set out in the notes following the table. The pro forma
financial effects are the responsibility of the directors and are provided for
illustrative purposes only.
Actual before Pro forma after
the Distribution the Distribution
Distribution
of capital of capital of capital
out of share out of share out of share
premium(i) premium(ii) premium
Assets
Cash and cash 921,3 (381,3) 540,0
equivalents
(R million)
Equity and
liabilities
Equity attributable 8 315,9 (381,3) 7 934,6
to owners of the
parent(iii)
(R million)
NAV(iv) (cents per 5 246,7 5 006,1
share)
TNAV(iv) (cents per 3 993,8 3 753,2
share)
Notes:
(i) As per the published reviewed results of Tiger Brands for the year ended 30
September 2010;
(ii) Adjustments to cash & cash equivalents and equity attributable to owners of
the parent were made on the assumption that the Distribution was paid on 30
September 2010;
(iii) Equity attributable to ordinary shareholders comprises the following line
items:
Actual before Pro forma after
the Distribution Impact of the the Distribution
of capital Distribution of capital
out of share of 235 cents out of share
premium(i) per share(ii) premium
(Rm) R million R million R million
Ordinary share 19,0 - 19,0
capital
Share premium 462,4 (437,4) 25,0
Non- 957,3 - 957,3
distributable
reserves
Accumulated 9 366,5 (4,8) 9 361,7
profits
Tiger Brands (742,4) 24,3 (718,1)
Limited shares
held by
subsidiary
Tiger Brands (1 998,5) 36,6 (1 961,9)
Limited shares
held by
empowerment
entities
Share-based 251,6 - 251,6
payment reserve
Total equity 8 315,9 (381,3) 7 934,6
attributable to
owners of the
parent
(iv) The calculation of NAV per share and TNAV per share as at 30 September 2010
has been based on 158 497 661 ordinary shares in issue (which excludes the 10
326 758 treasury shares held by a wholly-owned subsidiary of Tiger Brands, as
well as 21 375 586 shares held by various empowerment entities which are
consolidated for accounting purposes).
For income tax purposes, Tiger Brands shareholders are advised that the
Distribution will be regarded as a return of capital and that consideration
should be given to the potential capital gains tax consequences. Tiger Brands
shareholders are, therefore, advised to consult their tax advisors with regard
to how they may be impacted by the Distribution.
On behalf of the Board
I W M Isdale
Group Secretary
Sandton
24 November 2010
Date: 24/11/2010 07:16:17 Produced by the JSE SENS Department.
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