IPL - Imperial Holdings Limited - Changes to prefe
IPL IPLP
IPL
IPL - Imperial Holdings Limited - Changes to preference share dividends
Imperial Holdings Limited
Registration number: 1946/021048/06
Ordinary share code: IPL ISIN: ZAE000067211
Preference share code: IPLP ISIN: ZAE000088076
("Imperial")
Changes to preference share dividends
In his budget speech on 21 February 2007, the Honourable Minister of
Finance proposed the introduction in 2008 of a 10% withholding tax on
dividends and the elimination of STC (Secondary Tax on Companies) in two
stages: a reduction in the STC rate from 12.5% to 10% effective 1 October
2007 and the abolition of STC during 2008. The text of draft legislation
giving effect to these proposed changes has not yet been released.
Numerous enquiries have been received from preference shareholders as to
whether Imperial will increase preference dividends in view of the
anticipated negative impact on preference shareholders of the new dividend
tax while Imperial, as issuer, is expected to benefit from the proposed
abolition of STC.
We believe that it would be consistent with the intention of the existing
income tax adjustment clause in the Company`s Articles of Association to
increase the dividend rate on Imperial`s non-redeemable, non-participating
preference shares appropriately. This matter is still under investigation
but preliminary legal advice indicates that any steps taken to increase
preference share dividend rates to compensate preference shareholders for
this new tax, may require an amendment to the Company`s Articles of
Association, in which event it will be a matter to be considered by
ordinary and preference shareholders.
A further announcement in this regard will be made once the detailed
legislation is published.
Company Secretary
RA Venter
By order of the Board
16 March 2007
BEDFORDVIEW
Sponsor
Merrill Lynch South Africa (Pty) Limited
Date: 16/03/2007 17:11:53 Produced by the JSE SENS Department.
Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information.
