Liberty Group Limited - Results Of The General Mee
LIBERTY GROUP LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1957/002788/06)
("Liberty Group" or "the company")
RESULTS OF THE GENERAL MEETING
Shareholders are advised that at the general meeting held on Wednesday, 28
March 2001, the special resolution permitting the company to reduce its share
premium account and to distribute to its ordinary shareholders registered as
such at the close of business on Friday, 30 March 2001, an amount of 1 200
cents per ordinary share ("the reduction of share capital"), was approved by
the requisite majority of Liberty Group shareholders.
The Registrar of Long-Term Insurance has approved the reduction of share
capital. The special resolution will be lodged on 28 March 2001 with the
Registrar of Companies for registration. Upon registration of the special
resolution by the Registrar of Companies all outstanding conditions precedent
in order to effect the reduction of share capital will have been fulfilled. It
is envisaged that the cash distribution will be made to Liberty Group
shareholders participating in the reduction of share capital on Friday, 6 April
2001.
Liberty Group wish to inform South African resident shareholders that the
taxation consequences of the cash distribution as far as Secondary Tax on
Companies ("STC") is concerned, are estimated to be as follows:
- 42,9% of the cash distribution will be deemed not to be a dividend for
taxation purposes and will thus not be subject to STC;
- 57,1% of the cash distribution will be deemed to be a dividend for taxation
purposes in accordance with the provisions of paragraph (iii) of the second
proviso to the definition of a "dividend" in the Income Tax Act, 1962 (Act 58
of 1962) ("the Act"). This portion of the cash distribution will therefore
qualify as a deduction for purposes of calculating "the net amount of any
dividend declared by any company", i.e. will qualify as an STC credit in the
hands of shareholders, as determined in terms of sub-section (3) of section 64B
of the Act.
The taxation consequences for non-resident shareholders are dependent on the
tax jurisdiction applicable to such shareholders.
This notice is not intended to be a comprehensive statement of the taxation
consequences of the cash distribution in the hands of shareholders. Both
resident and non-resident shareholders who are in any doubt as to the
consequences of the above should consult their professional advisers.
By order of the board
J Worwood
Group secretary
Johannesburg
28 March 2001
Sponsor
Merrill Lynch South Africa (Pty) Ltd
Registered sponsor and
Member of the JSE Securities Exchange South Africa
Registration number 1995/001805/07
Attorneys
Werksmans Attorneys
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