| Wed 4 Apr 2012, 17:06 | | PSG/PGFP - PSG Group Limited/PSG Financial Services Limited - Update |
|
JSE PGFP PSG
PGFP PSG
PSG/PGFP - PSG Group Limited/PSG Financial Services Limited - Update
Announcement regarding the introduction of Dividends Tax
PSG Group Limited
Incorporated in the Republic of South Africa
Registration number: 1970/008484/06
JSE share code: PSG
ISIN number: ZAE000013017
PSG Financial Services Limited
(Incorporated in the Republic of South Africa)
Registration number: 1919/000478/06
JSE share code: PGFP
ISIN number: ZAE000096079
("PSG" or "the Company")
UPDATE ANNOUNCEMENT REGARDING THE INTRODUCTION OF DIVIDENDS TAX
Shareholders in PSG`s cumulative, non-redeemable, non-participating preference
shares ("PSG Preference Shares") are referred to the SENS announcement dated 25
January 2012. In accordance with the PSG Preference Share Terms, the Company
will adjust the Dividend Rate in the event that an amendment to the Income Tax
Act results in both a cost saving to the Company and the Preference Dividends
being taxable in the hands of the PSG Preference Shareholders. Such adjustment
will, however, be limited to the extent that the Company incurs less cost in
servicing the PSG Preference Shares.
Shareholders are hereby advised that the PSG board of directors have resolved
that the PSG Preference Shares Dividend Rate be increased from 75% to 83.33% of
the prime interest rate with effect from 1 April 2012, being an increase of
11.11%, and which was calculated in terms of the formula as per the announcement
dated 25 January 2012 when the widely anticipated Dividends Tax rate was 10%.
PSG believes that the increase in the PSG Preference Shares Dividend Rate is
fair, albeit that the aforementioned increase is marginally more than the 10%
STC saving obtained by the Company.
Shareholders should note that in terms of the relevant PSG Preference Share
Terms, should there in future be any changes to Tax Legislation which result in
additional tax being levied on dividends received by the PSG Preference
Shareholders, there will be no obligation on the Company to adjust the PSG
Preference Shares Dividend Rate, unless such changes to Tax Legislation
simultaneously result in a cost saving to the Company in servicing such shares.
Stellenbosch
4 April 2012
Sponsor
PSG Capital
Date: 04/04/2012 17:06:38 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.
