ABL - ABIL - Impact of proposed changes to tax leg
ABL ABLP
ABL
ABL - ABIL - Impact of proposed changes to tax legislation on ABIL preference
shares
African bank investments limited
(Incorporated in the Republic of South Africa)
(Registered bank controlling company)
(Registration number 1946/021193/06)
Ordinary share code : ABL ISIN : ZAE000030060
Preference share code : ABLP ISIN : ZAE000065215
("ABIL" or "the Company")
IMPACT OF PROPOSED CHANGES TO TAX LEGISLATION ON ABIL PREFERENCE SHARES
In his budget speech on 21 February 2007, the Honourable Minister of Finance
proposed the abolition of secondary tax on companies (STC) and the introduction
of a tax on dividends in the hands of shareholders in the future.
ABIL has received numerous enquiries from preference shareholders as to whether
it will increase the dividend rate on its preference shares to compensate for
the negative impact of the above changes, when they are legislated.
ABIL`s board of directors believes that an adjustment to the preference share
dividend rate would be consistent with the principles embodied in the tax
adjustment clause of its Articles of Association, even though they do not
specifically cater for the proposed tax changes.
Once the legislation has been finalised, ABIL intends to request the necessary
approval from its shareholders, and will keep investors informed of new
developments in this regard.
Midrand
28 February 2007
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 28/02/2007 16:49:01 Produced by the JSE SENS Department.
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