Intu Properties plc Dividend exchange rate and SCRIP pricing (8105B)

TIDMINTU

RNS Number : 8105B

Intu Properties plc

09 October 2015

9 OCTOBER 2015

2015 INTERIM DIVIDEND:

TIMETABLE, EXCHANGE RATE AND SCRIP CALCULATION PRICES

On 30 July 2015, the Directors proposed an interim dividend for 2015 of 4.6 pence per share (the "dividend"). As confirmed on 2 October 2015, the Directors are offering shareholders a scrip alternative to the 2015 interim cash dividend which will be wholly paid as a Property Income Distribution ("PID") and will be subject to deduction of a 20 per cent UK withholding tax unless exemptions apply.

The Company is now pleased to announce the share price applicable to the scrip alternative to the cash dividend and, for its South African shareholders, the exchange rate applicable to the dividend. The salient dates for payment of the dividend published in the announcement dated 2 October 2015 remain unchanged.

Further details of the scrip dividend alternative are contained in the Scrip Dividend Scheme Booklet, and the related Election forms, which are available from http://www.intugroup.co.uk/investors/shareholders-bondholders/dividends/2015-interim-dividend/ and from the Company's Registrars.

(i) Shareholders receiving the dividend in cash:

The Company confirms that the South African Rand exchange rate for the 2015 interim dividend will be 20.71650 ZAR to 1 GBP. Shareholders who do not make an election to receive shares will receive a cash dividend per ordinary share which will be paid wholly as a PID as follows:

 
                            UK Shareholders    SA Shareholders 
-------------------------  ----------------  ------------------ 
 Gross amount of PID        GBP pence 4.60p   95.29590 ZA cents 
-------------------------  ----------------  ------------------ 
 *Less 20% withholding      GBP pence 0.92p   19.05918 ZA cents 
  tax 
-------------------------  ----------------  ------------------ 
 Net PID dividend payable   GBP pence 3.68p   76.23672 ZA cents 
-------------------------  ----------------  ------------------ 
 

*Certain categories of UK shareholder may apply for exemption, in which case the PID will be paid gross

(ii) Shareholders who elect to take shares:

(a) Dividend equivalent values:

Shareholders who make an election to receive shares instead of the cash dividend will receive shares with a value equivalent to a dividend per ordinary share as follows:

 
                         UK Shareholders    SA Shareholders 
----------------------  ----------------  ------------------ 
 Gross amount of PID     GBP pence 4.60p   95.29590 ZA cents 
  element 
----------------------  ----------------  ------------------ 
 *Less 20% withholding   GBP pence 0.92p   19.05918 ZA cents 
  tax 
----------------------  ----------------  ------------------ 
 PID element (net)       GBP pence 3.68p   76.23672 ZA cents 
----------------------  ----------------  ------------------ 
 

*Certain categories of UK shareholder may apply for exemption, in which case the PID will be paid gross

(b) Share entitlement: Shareholders on the UK share register:

The price setting period for the Scrip price calculation was 2 October to 8 October 2015 inclusive. Based on the average middle market quotations for each day in the price setting period on the LSE less the gross amount of dividend as set out above, the Scrip Calculation Price applicable to UK shareholders is GBP pence 329.58. The scrip share allocation will be as follows:

 
                                  PID element 
------------------------   ------------------------ 
                            PID (Net)   PID (Gross) 
------------------------   ----------  ------------ 
 No. of shares required 
  to be held for one 
  new share                 89.07568     71.64783 
-------------------------  ----------  ------------ 
 

The number of shares to be allocated will be calculated by dividing the total value of the dividend otherwise receivable by the shareholder by the Scrip Calculation Price and rounding down to the nearest whole number. Any fractional entitlement, i.e. the total value of the dividend receivable less the value of the shares allocated, will be paid out as cash.

(c) Share entitlement: Shareholders on the South Africa share register:

The exchange rate for the calculation of share entitlement is as stated above, 20.71650 ZAR to 1 GBP. The price setting period for the Scrip price calculation was 2 October to 8 October 2015 inclusive. Based on the average middle market quotations for each day in the price setting period on the JSE less the gross amount of dividend as set out above, the Scrip Calculation Price applicable to South African shareholders is 6,862.7 ZA cents. The scrip share allocation will be as follows:

 
                                       PID element 
                                          (net) 
-----------------------------------   ------------ 
 No. of shares required to be held 
  for one new share                     90.01830 
------------------------------------  ------------ 
 

The number of shares to be allocated will be calculated by dividing the total value of the dividend otherwise receivable by the shareholder by the Scrip Calculation Price and rounding down to the nearest whole number. Any fractional entitlement (which for these purposes will be treated as a residual dividend), i.e. the total value of the dividend receivable less the value of the shares allocated, will be paid out as cash, wholly as a PID dividend.

By way of illustration of the above, the scrip share calculation will be as follows for a shareholder who holds 100 shares:

 
                                        PID (net) 
                                          element 
-----------------------------------   ------------- 
 Amount of dividend entitled 
  to receive (per (a) above              R 76.23672 
  x 100): 
-----------------------------------   ------------- 
 
 No. of shares entitled to 
  receive: 
-----------------------------------   ------------- 
            Calculation:               100/90.01830 
------------------------------------  ------------- 
         No. of new shares:              1.11089 
------------------------------------  ------------- 
 
 Example of fractional entitlement 
  calculation: 
-----------------------------------   ------------- 
 Fraction (from above):                  0.11089 
------------------------------------  ------------- 
 Fractional entitlement 
  (multiply fraction by scrip            R 7.61005 
  price) 
------------------------------------  ------------- 
 

(iii) Notes for South African shareholders

On application by South African shareholders, 5 per cent of the PID (i.e. one quarter of the 20 per cent UK withholding tax deducted from a PID) is claimable from the UK's HM Revenue & Customs ("HMRC"), resulting in an effective UK withholding tax rate of 15 per cent. The Company will account to HMRC in sterling for the total UK withholding tax deducted. Settlement of any claims for refund will be calculated and settled in sterling by HMRC.

The information given in either section (i) or (ii) above will assist with applications for refunds. For information on PIDs and refund claims, including claim forms and guidance on how to complete them, visit http://www.intugroup.co.uk/investors/shareholders-bondholders/real-estate-investment-trust/.

No secondary tax on companies (STC) credits will be available to be utilised against any SA Dividends Tax withheld on the payment of the interim dividend. The number of shares in issue as at the declaration date was 1,339,218,801 ordinary shares of 50p each.

SA Taxation summary:

Where the 2015 interim dividend is paid in cash, it will constitute a foreign dividend and so will be exempt from South African income tax, but subject to deduction of SA Dividends Tax unless an exemption or rebate applies. For cash PIDs the liability to Dividends Tax will be offset by the net UK withholding tax of 15 per cent, resulting in no Dividends Tax being deducted. It is our understanding that where an election to receive shares under the Scrip Dividend Scheme has been made, any fractional entitlements paid in cash to shareholders will be treated in the same manner as that applicable to the underlying element of the dividend, i.e. non-PID or PID.

It is also understood that a receipt of shares under the Scrip Dividend Scheme will not constitute a foreign dividend. Under current legislation, such shares will not therefore be subject to Dividends Tax or income tax, but the full value of the shares on eventual disposal will be subject to Capital Gains Tax with no base cost allowed.

The above information, and the guidelines on the taxation of dividends, including when taken as scrip shares, contained in the Scrip Dividend Scheme Booklet, is provided as a general guide based on the Company's understanding of the law and practice currently in force. Any Shareholder who is in any doubt as to their tax position should seek independent professional advice.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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October 09, 2015 06:11 ET (10:11 GMT)