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Tiger Brands - Unbundling of shares in The Spar Group Limited Apportionment
Ratio for tax purposes
TIGER BRANDS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1944/017881/06)
Share code: TBS ISIN: ZAE000023560
(`Tiger Brands` or `the company`)
Unbundling of shares in The Spar Group Limited (`Spar`) Apportionment Ratio for
tax purposes
Introduction
In the circular issued to Tiger Brands shareholders on 23 September 2004 (`the
circular`), Tiger Brands informed its shareholders of the proposed unbundling
and distribution of the shares in Spar to Tiger Brands shareholders recorded in
the register at the close of business on Friday, 22 October 2004 (`the record
date`), to be effected by way of a distribution in specie in terms of section 46
of the Income Tax Act, 1962 (Act 58 of 1962), as amended, in the ratio of one
Spar share for every Tiger Brands share held on the record date.
The purpose of this announcement is to notify Tiger Brands shareholders of the
ratio to be used in the apportionment of the original cost/base cost of the
Tiger Brands shares between the Tiger Brands shares post unbundling and the Spar
distribution shares. .
The potential South African tax considerations were set out in the circular.
Tiger Brands shares held as capital assets
Any Tiger Brands shareholders holding the shares as capital assets are deemed to
have acquired both the Tiger Brands shares and the Spar distribution shares at a
combined cost equal to the initial expenditure allowable for capital gains tax
purposes in acquiring the Tiger Brands shares, or where the Tiger Brands shares
were acquired before 1 October 2001, either equal to such expenditure or the
market value of the Tiger Brands shares at 1 October 2001 (which was R56.87 in
respect of each Tiger Brands share).
Such expenditure or the market value, as the case may be, is to be split on a
pro rata basis between the Tiger Brands shares and the Spar distribution shares,
based on their respective market values at the close of trade on Tuesday,
October 19, 2004, being the day after the listing date.
Based upon this, the apportionment of such expenditure or the market value, as
the case may be, will therefore be 81.26% to the Tiger Brands shares and 18.74%
to the Spar distribution shares. This ratio must be used in the determination of
the capital gain or loss derived on any future disposals of Tiger Brands or Spar
distribution shares. Should Tiger Brands shareholders elect to determine this
base cost on the market value of the Tiger Brands shares at 1 October 2001, such
market value would be determined as R46.21 per Tiger Brands share and R10.66 per
Spar distribution share. This election is only available if the Tiger Brands
shares were acquired before 1 October 2001.
Tiger Brands shares held as trading stock
Any shareholder holding Tiger Brands shares as trading stock must use the above
ratio in the determination of any profits or losses derived on any future
disposals of Tiger Brands or Spar shares.
Johannesburg
20 October 2004
Investment bank and transactional sponsor
Nedbank Capital
Corporate law advisers
Edward Nathan & Friedland
Lead sponsor
Cazenove
Date: 20/10/2004 04:10:04 PM
Produced by the JSE SENS Department
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