CAPITAL & COUNTIES PROPERTIES PLC (the "Company")
2016 INTERIM DIVIDEND - EXCHANGE RATE AND SCRIP CALCULATION PRICES
Capital & Counties Properties PLC announced on 30 August 2016 that SARB approval for the offering of a scrip dividend alternative had been obtained and accordingly shareholders are able to elect to receive new ordinary shares in the Company, credited as fully paid, in lieu of cash in respect of the 2016 interim dividend of 0.5 pence per ordinary share.
Exchange Rate for Interim Dividend
The Company confirms that the South African Rand exchange rate for the 2016 interim dividend of 0.5 pence per ordinary share to be paid on 30 September 2016, to all shareholders registered on 9 September 2016, will be 19.20000 ZAR to 1 GBP.
On this basis, shareholders who hold their shares via the South African register will receive a cash dividend of 9.60000 ZA cents per ordinary share.
Scrip Calculation Price
The Scrip Calculation prices are as follows:
UK (principal register): 294.34 pence (Sterling)
South Africa: 5,612.80000 cents (South African Rand)
The same share prices will be used for calculating residual payments under the Scrip Dividend Scheme.
UK (principal register): 1 new ordinary share for every 588.68 ordinary shares held
South Africa: 1 new ordinary share for every 584.66667 ordinary shares held (5,612.80000 / 9.60000 = 584.66667.)
As no fraction of a share can be issued, the number of shares to be issued will be rounded down to the nearest whole number and any residual cash balance will be paid immediately to the relevant shareholder (unless a UK shareholder has made an "evergreen election").
By way of illustration of the above, a shareholder who holds 1000 shares on the South African branch register and elects to receive the scrip dividend alternative would be entitled to 1000 / 584.66667 = 1.71038 shares which would be rounded down to 1 share, and the residual payment would be 0.71038 x 5,612.80000 cents = 3,987.22086 ZA cents, payable in cash.
Further details of the scrip dividend alternative are contained in the Scrip Dividend Scheme Booklet, Supplemental Notices and the related mandate forms, which are available on Capco's website at www.capitalandcounties.com and from Capco's share Registrars.
Important Information for South African Shareholders:
In South Africa, the 2016 interim cash dividend will constitute a foreign dividend and will therefore be subject to South African Dividends Tax. Dividends Tax will be withheld at the rate of 15 per cent. unless a shareholder qualifies for an exemption or a reduced rate of Dividends Tax and the prescribed requirements for effecting the exemption or reduction, as set out in the scrip dividend scheme booklet, are in place. After Dividends Tax has been withheld, the net interim dividend will be 8.16000 ZA cents per ordinary share.
The number of shares in issue as at the declaration date was 845,464,435 ordinary shares of 25p each.
It is Capco's understanding that a receipt of shares in terms of the scrip dividend alternative will not constitute a foreign dividend in terms of current legislation which is in force. Under the current legislation, the scrip dividend will constitute a receipt of a capital nature and will not be subject to income tax. The new shares which are acquired under the Scrip Dividend Alternative will be treated as having been acquired for nil consideration.
It is also Capco's understanding that the residual cash payments will be subject to South African Dividends Tax, which will be withheld from the residual payment to South African shareholders at a rate of 15 per cent. unless a shareholder qualifies for an exemption or reduced rate of Dividends Tax and the prescribed requirements for effecting the exemption or reduction, as set out in the scrip dividend scheme booklet, are in place.
This information is included only as a general guide to taxation for Shareholders resident in South Africa based on Capco's understanding of the law and the practice currently in force. Any Shareholder who is in any doubt as to their tax position should seek independent professional advice.
The salient dates published in the announcement dated 26 July 2016 remain unchanged.
Acting Company Secretary
Capital & Counties Properties PLC
+ 44 (0) 20 3214 9174
5 September 2016
This information is provided by RNS