| Thu 15 Mar 2012, 11:08 | | INL/INP - Investec Limited/Investec plc - Dividend Withholding Tax |
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INL INP
INL INP
INL/INP - Investec Limited/Investec plc - Dividend Withholding Tax
Announcement
Investec Limited
Incorporated in the Republic of South Africa
Registration number 1925/002833/06
JSE share code: INL
ISIN: ZAE000081949
Investec plc
Incorporated in England and Wales
Registration number 3633621
JSE share code: INP
ISIN: GB00B17BBQ50
As part of the dual listed company structure, Investec plc and Investec
Limited (together "Investec") notify both the London and Johannesburg Stock
Exchanges of those interests (and changes to those interests) of (i)
directors of both entities and the respective company secretaries, (ii)
persons discharging managerial responsibilities (PDMRs) across the group,
and (iii) in certain instances the directors of major subsidiaries of
Investec Limited, in the securities of Investec plc and Investec Limited
which are required to be disclosed under the Disclosure and Transparency
Rules of the United Kingdom Listing Authority (the "UKLA") and/or the JSE
Listing Requirements.
CHANGES TO SECONDARY TAX ON COMPANIES AND THE INTRODUCTION OF A DIVIDEND
WITHHOLDING TAX AND THEIR EFFECT ON THE INVESTEC LIMITED NON-REDEEMABLE, NON-
CUMULATIVE, NON-PARTICIPATING PREFERENCE SHARES
Holders of Investec Limited ("Investec") non-redeemable, non-cumulative, non-
participating preference shares ("Investec Preference Shares") are referred
to the announcement, released on the Securities Exchange News Service of
JSE Limited on 26 February 2007, dealing with the grossing up of the
Investec Preference Share dividends as a result of the then proposed
amendments to the tax legislation regarding the changes to Secondary Tax on
Companies ("STC") and the introduction of a dividend withholding tax on all
dividend distributions by a company to its shareholders, as contemplated in
sections 64D to 64N of the Income Tax Act, 58 of 1962, as amended ("Income
Tax Act") ("Dividend Withholding Tax").
The impact of the change in the Income Tax Act is that STC will be abolished
as at 31 March 2012 and the Dividend Withholding Tax will be introduced for
dividends paid after 1 April 2012 at a rate of 15%, subject to certain
exemptions. As in the past, the Investec, as the Issuer, will pay the semi-
annual dividends to the transfer secretaries, who distribute the dividends
to the preference shareholders through the regulated intermediaries (i.e.
CSDP`s). These entities are required to pay the dividends to the preference
shareholders after deducting the Dividend Withholding Tax, unless the
shareholders have advised the regulated intermediary that they are exempt in
terms of the provisions of the Income Tax Act. We recommend that holders of
the Investec Preference Shares who may be exempt from paying Dividend
Withholding Tax get in touch with their CSDP`s / Brokers to ensure that
their personal information is updated and that they verify whether they are
exempt from paying the Dividend Withholding Tax.
The board of directors of Investec has consequently resolved to amend the
rate used to calculate the dividend payable on the Investec Preference
Shares on or about 02 August 2012, being the date on which the Annual
General Meeting of Investec will take place from the current rate of 70% of
the prime rate to 77,77% of the prime rate, to the extent that Investec
does not have sufficient STC credits, and subject to the passing of the
required resolutions by both the holders of Investec Preference Shares and
the holders of Investec Ordinary Shares.
A circular containing full detail of the amendment to the terms of the
Investec Preference Shares, including, inter alia, a notice convening a
Class Meeting of Investec Preference Shareholders, together with the notice
of the Annual General Meeting of Investec will be posted on or about 30 June
2012.
Holders of the Investec Preference Shares will not be prejudiced by the
Dividend Withholding Tax in respect of dividend number 15 for the period to
31 March 2012, which will be declared and payable after 01 April 2012, as
Investec has sufficient STC credits.
London and Johannesburg
15 March 2012
Sponsor:
Investec Bank Limited
Date: 15/03/2012 11:08:45 Produced by the JSE SENS Department.
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