TIDMHMSO
RNS Number : 7874Y
Hammerson PLC
08 March 2017
The following amendments have been made to the 'Dividend
Declaration' announcement released on 7 March 2017 at 09:00 under
RNS No 6721Y. The amendments only concern the conversion to ZAR
cents.
PID UK Shareholders SA Shareholders
(GBP pence) (ZAR cents)
--------------------------- ---------------- ----------------
Gross amount of PID 4.90p 77.96880 cents
--------------------------- ---------------- ----------------
Less 20% UK withholding 0.98p 15.59376 cents
tax/20% SA dividends tax*
--------------------------- ---------------- ----------------
Net PID dividend payable 3.92p 62.37504 cents
--------------------------- ---------------- ----------------
Non-PID* UK Shareholders SA Shareholders
(GBP pence) (ZAR cents)
----------------------------- ---------------- ----------------
Gross amount of Non-PID 9.00p 143.20800 cents
----------------------------- ---------------- ----------------
Less 20% SA dividends tax - 28.64160 cents
----------------------------- ---------------- ----------------
Net Non-PID dividend payable 9.00p 114.56640 cents
----------------------------- ---------------- ----------------
All other details remain unchanged.
The full amended text is shown below.
Hammerson plc ("Hammerson" or "the Company")
7 March 2017
Dividend Currency Conversion Announcement
Dividend No. 132
On 20 February 2017, the board of directors of Hammerson
proposed a final dividend of GBP 13.90 pence per share ("the
Dividend"). The Dividend will be subject to a 20% UK withholding
tax unless exemptions apply. GBP 4.90 pence will be paid as a
Property Income Distribution ("PID"), net of withholding tax where
appropriate, with the balance of GBP 9.00 pence paid as a normal
dividend ("Non-PID").
The Dividend Reinvestment Plan ("DRIP") will be available for
those shareholders who wish to receive the Dividend in the form of
shares. The Dividend is payable on Thursday, 27 April 2017 to those
shareholders registered on the UK principal register ("UK
Shareholders"), and Friday, 28 April 2017 to those shareholders
registered on the South African branch register ("SA
Shareholders"). The Record Date for both UK Shareholders and SA
Shareholders is at the close of business on Friday, 17 March
2017.
The Dividend should be regarded as a "foreign dividend" for SA
income and SA dividend tax purposes.
Shareholders receiving the Dividend in cash
The Company confirms that the South African Rand exchange rate
for the Dividend will be ZAR 15.9120 to GBP 1. The Dividend is
payable in South African Rand to SA Shareholders. Accordingly,
shareholders who do not elect the DRIP will be paid as follows:
PID UK Shareholders SA Shareholders
(GBP pence) (ZAR cents)
--------------------------- ---------------- ----------------
Gross amount of PID 4.90p 77.96880 cents
--------------------------- ---------------- ----------------
Less 20% UK withholding 0.98p 15.59376 cents
tax/20% SA dividends tax*
--------------------------- ---------------- ----------------
Net PID dividend payable 3.92p 62.37504 cents
--------------------------- ---------------- ----------------
*Please note that this is the net position after SA Shareholders
have claimed back 5% from HMRC under the double tax agreement
between the United Kingdom and South Africa.
Non-PID* UK Shareholders SA Shareholders
(GBP pence) (ZAR cents)
----------------------------- ---------------- ----------------
Gross amount of Non-PID 9.00p 143.20800 cents
----------------------------- ---------------- ----------------
Less 20% SA dividends tax - 28.64160 cents
----------------------------- ---------------- ----------------
Net Non-PID dividend payable 9.00p 114.56640 cents
----------------------------- ---------------- ----------------
*Non-PID - taxed as a normal dividend
Cash PIDs
A 20% UK withholding tax will be deducted from cash PIDs. The
Company will account to Her Majesty's Revenue & Customs
("HMRC") in sterling for the total UK withholding tax deducted.
SA dividends tax, at the rate of 20% (previously announced as
15%, however the rate has subsequently been increased from 15% to
20% following an announcement by the South African Minister of
Finance on 22 February 2017), will apply to cash PIDs payable by
the Company unless the beneficial owner of the Dividend is exempt
from SA dividends tax (e.g. if it is a South African resident
company). Under the double tax agreement between the UK and South
Africa ("the DTA"), the maximum tax payable in the UK is 15%. South
African resident shareholders are therefore entitled to claim the
excess of 5% from HMRC. As SA Shareholders are entitled to reclaim
this excess from HMRC, the maximum rebate allowable in respect of
the UK withholding tax against the SA dividends tax is 15%, which
means that the Company will have to withhold a further 5% from the
Dividend in South Africa to bring the total dividends tax to 20%.
In summary, therefore, 20% will be withheld in the UK, a further 5%
will be withheld in South Africa (where appropriate), but South
African resident shareholders will be entitled to claim back 5%
from HMRC, which will bring the overall total to 20%.
Cash Non-PIDs
SA dividends tax at the rate of 20% will apply to cash Non-PIDs
paid by the Company, unless the beneficial owner of the Dividend is
exempt from SA dividends tax (e.g. if the beneficial owner is a
South African company or a non-South African resident). Since no
withholding tax is suffered in the UK on cash Non-PIDs, no rebate
can be claimed. The relevant regulated intermediary (being the SA
transfer secretaries or other CSDP, broker or institution, as
applicable) will therefore be required to deduct 20% tax on all
cash Non-PID's paid to persons who are not exempt from SA dividends
tax, and pay this to the South African Revenue Service.
Shareholders electing the DRIP
SA Shareholders electing the DRIP should note that, in respect
of fractional entitlements that may arise, all allocations of
shares will be rounded down to the nearest whole number, and any
residual amounts that are not used to reinvest in shares (as a
result of rounding down) will be paid out to these SA Shareholders
in cash.
It is the Company's understanding that the residual cash paid to
SA Shareholders who have made DRIP elections would already have
been taxed prior to the calculation of the number of shares and any
residual cash owing to such SA Shareholders. Accordingly, no
further tax should be payable on the cash paid to SA Shareholders
as a result of any fractional entitlements.
The above information and the guidelines on the taxation of
dividends are provided as a general guide based on the Company's
understanding of the law and practice currently in place. Any
shareholder who is in any doubt as to their tax position should
seek independent professional advice.
Registered Office UK Registrars SA Transfer Secretaries
Kings Place Capita Asset Services Computershare Investor
90 York Way The Registry Services Proprietary
London 34 Beckenham Road Limited
N1 9GE Beckenham (Registration number
United Kingdom Kent 2004/003647/07)
BR3 4TU 1st Floor, Rosebank
United Kingdom Towers,
15 Biermann Avenue,
Rosebank, 2196
South Africa
(PO Box 61051, Marshalltown,
2107, South Africa)
Sarah Booth
General Counsel and Company Secretary
The announcement above has been released on the SENS system of
the Johannesburg Stock Exchange.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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