| Wed 22 Feb 2023, 8:00 | | CORONATION FUND MANAGERS LIMITED - Update To Shareholders: Next Steps In SARS Litigation, Financial Impact And Withdrawal Of Cautionary Announcement |
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Update To Shareholders: Next Steps In SARS Litigation, Financial Impact And Withdrawal Of Cautionary Announcement
CORONATION FUND MANAGERS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1973/009318/06
Share code: CML
ISIN: ZAE000047353
LEI: 3789001BC9A29E6FF77
(“Coronation” or “the Company”)
UPDATE TO SHAREHOLDERS: NEXT STEPS IN SARS LITIGATION, FINANCIAL IMPACT
AND WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT
Shareholders are referred to the cautionary announcement released on SENS by the
Company on 8 February 2023 (“previous announcement”).
Shareholders were informed in the previous announcement of the outcome of the Supreme
Court of Appeal (“SCA”) hearing in the matter of South African Revenue Service (“SARS”) vs
the Company’s subsidiary, Coronation Investment Management SA (Pty) Ltd (“CIMSA”).
As conveyed in the previous announcement, the Company is disappointed with the SCA
judgment in favour of SARS, which overturned the decision of the Western Cape Tax Court.
Next steps in the SARS Litigation
After careful consideration, the boards of the Company and CIMSA, informed by the advice of
legal counsel and professional tax advisers, have determined that CIMSA should apply to the
Constitutional Court for leave to appeal against the SCA judgment and such application will
be made within the stipulated timeline.
Financial impact
Notwithstanding the decision to apply for leave to appeal, the Company is required to raise a
provision as a consequence of the SCA judgement.
The provision is based on all financial years from 2012 to 2022 being impacted by the
application of the SCA judgment and is estimated to be between R800 million and R900
million.
Shareholders are advised that the expected impact of the provision will reduce earnings per
share (“EPS”), headline earnings per share (“HEPS”) and diluted headline earnings per share
(“DHEPS”) for the six months ended 31 March 2023 when compared to the EPS, HEPS and
DHEPS for the six months ended 31 March 2022. Due to the material financial impact, the
Company will not be paying an interim dividend for the period ended 31 March 2023.
Shareholders are advised that this is not a trading statement in terms of the JSE Listings
Requirements, as the Company is not in a position where it has a reasonable degree of
certainty regarding the expected range for EPS, HEPS and DHEPS for the six months ended
31 March 2023.
The financial information on which this SENS has been based has not been reviewed nor
reported on by the Company’s external auditors.
Withdrawal of the Cautionary Announcement contained in the previous SENS
As a result of the detailed disclosure contained in this announcement, Shareholders are
advised that the cautionary contained in the previous SENS is hereby withdrawn. Caution is,
therefore, no longer required to be exercised when dealing in the Company’s securities.
Cape Town
22 February 2023
Sponsor
PSG Capital
Date: 22-02-2023 08:00:00
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