Redefine International PLC Finalisation of Interim Dividend (5331G)

TIDMRDI

RNS Number : 5331G

Redefine International PLC

30 May 2017

REDEFINE INTERNATIONAL P.L.C.

("Redefine International" or the "Company")

(Registered number 010534V)

LSE share code: RDI

JSE share code: RPL

ISIN: IM00B8BV8G91

FINALISATION ANNOUNCEMENT IN RESPECT OF THE INTERIM DIVID FOR

THE SIX MONTHSED 28 FEBRUARY 2017

Redefine International shareholders are referred to the announcement released on 28 April 2017 regarding the election being offered to Redefine International shareholders to receive the interim dividend of 1.3 pence per share in respect of the six months ended 28 February 2017 as either a cash dividend or a scrip dividend by way of an issue of new Redefine International shares (of the same class as existing shares) credited as fully paid up ("scrip dividend").

The Company is now pleased to announce as follows:

(i) Of the total UK dividend of 1.3 pence to be paid, whether as a cash dividend or scrip dividend:

- 0.975 pence (75%) will comprise a property income distribution ("PID"). The PID will be subject to a deduction of 20% UK withholding tax unless exemptions apply.

- 0.325 pence (25%) will comprise a non-PID. As a non-PID, this will be treated as an ordinary UK company dividend, with no withholding tax deducted.

(ii) The GBP to Rand conversion rate is 16.332. Accordingly, the Rand equivalent of the cash dividend of 1.3 pence is 21.23160 ZAR cents. Of the total Rand equivalent dividend of 21.23160 ZAR cents to be paid, whether as a cash dividend or scrip dividend:

- 15.92370 ZAR cents (75%) will comprise a PID. The PID will be subject to a deduction of 20% UK withholding tax unless exemptions apply.

- 5.30790 ZAR cents (25%) will comprise a non-PID. As a non-PID, this will be treated as an ordinary UK company dividend, with no withholding tax deducted.

(iii) The scrip dividend reference price applicable to the scrip dividend is 36.201 pence, being a 2% discount to the average closing price of Redefine International shares traded on the LSE over a period of five days (less the amount of the cash dividend).

(iv) For shareholders on the South African share register who elect to participate in the scrip dividend, the scrip reference price equivalent is R5.91235.

The salient dates for payment of the dividend published in the announcement dated 28 April 2017 remain unchanged.

Further details on the scrip dividend are contained in the circular issued on 28 April 2017 (the "circular"), and the related election form, copies of which are available at www.redefineinternational.com. Terms defined in the circular shall bear the same meaning in this announcement.

   (i)       Shareholders receiving the cash dividend 

Shareholders who do not make an election to receive shares will receive a cash dividend calculated as follows:

 
                             Shareholders on         Shareholders 
                                         the               on the 
                           UK share register    SA share register 
-----------------------  -------------------  ------------------- 
 Non-PID element                 0.325 pence   5.30790 ZAR cents* 
-----------------------  -------------------  ------------------- 
 Plus 
-----------------------  -------------------  ------------------- 
                                                     15.92370 ZAR 
 PID element (gross)             0.975 pence                cents 
-----------------------  -------------------  ------------------- 
 **Less 20% withholding 
  tax                            0.195 pence    3.18474 ZAR cents 
-----------------------  -------------------  ------------------- 
                                                     12.73896 ZAR 
 PID element (net)               0.780 pence                cents 
-----------------------  -------------------  ------------------- 
 

* South African dividends tax at the rate of 20 per cent will apply to cash non-PIDs paid by the Company, unless the beneficial owner of the dividend is exempt from 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 will therefore be required to deduct 20 per cent tax on all cash non-PID's paid to persons who are not exempt from dividends tax in South Africa, and pay this to the South African Revenue Service on the beneficial owner's behalf. The non-PID element payable to shareholders on the SA share register net of this 20 per cent dividends tax is 4.24632 ZAR cents.

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

   (ii)      Shareholders who elect to receive shares 

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 dividend reference price. Any fractional entitlement which:

- is less than one half of a new Redefine International share, will be rounded down to the nearest whole number; and

- is equal to or greater than one half of a new Redefine International share but less than a whole new Redefine International share, will be rounded up to the nearest whole number; and

No fractions of scrip dividend shares will be issued, nor will any residual entitlements be carried forward to any future scrip dividend issue, and any amount of dividend not represented by scrip dividend shares will not be paid or payable to the relevant shareholders in respect of that dividend, but will be retained by the Company.

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

 
                                                          Shareholders 
                                  Shareholders on               on the 
                                              the    SA share register 
                                UK share register                    * 
----------------------------  -------------------  ------------------- 
 Amount of non-PID dividend 
  entitled to receive (per 
  (i) above x 100):                    32.5 pence             R5.30790 
----------------------------  -------------------  ------------------- 
 No. of shares entitled 
  to receive: 
----------------------------  -------------------  ------------------- 
                                32.5 pence/36.201 
 Calculation:                               pence    R5.30790/R5.91235 
----------------------------  -------------------  ------------------- 
                                          0.89777              0.89776 
----------------------------  -------------------  ------------------- 
 No. of new shares:                             1                    1 
----------------------------  -------------------  ------------------- 
 
 Net amount of PID dividend 
  entitled to receive (per 
  (i) above x 100):                    78.0 pence            R12.73896 
----------------------------  -------------------  ------------------- 
 No. of shares entitled 
  to receive: 
----------------------------  -------------------  ------------------- 
                                78.0 pence/36.201 
 Calculation:                               pence   R12.73896/R5.91235 
----------------------------  -------------------  ------------------- 
                                          2.15464              2.15464 
----------------------------  -------------------  ------------------- 
 No. of new shares:                             2                    2 
----------------------------  -------------------  ------------------- 
 

* R is the equivalent of 100 ZAR cents.

   (iii)     Notes for shareholders on the South African share register 

On application by the shareholder, assuming the shareholder is the beneficial owner of the dividend and is a South African resident for purposes of the South African - UK double tax agreement, a 5% rebate is claimable from UK's HM Revenue & Customs ("HMRC"), resulting in an effective UK withholding tax rate of 15%. The Company will account to HMRC in Pounds Sterling for the total UK withholding tax deducted. Settlement of any claims for refund will be calculated and settled in Pounds Sterling by HMRC.

For information on PIDs and refund claims, including claim forms and guidance on how to complete them, visit http://www.redefineinternational.com/investors/real-estate-investment-trust/.

The number of shares in issue as at the declaration date was 1 811 739 822 ordinary shares of 8 pence each.

For further information:

 
 Redefine International P.L.C. 
  Donald Grant                                     Tel: [phone] 
                                                   0100 
 FTI Consulting 
  UK Public Relations Adviser 
  Dido Laurimore, Claire Turvey, Ellie Sweeney     Tel: [phone] 
                                                   1000 
 Instinctif Partners 
  SA Public Relations Adviser 
  Frederic Cornet, Lizelle du Toit                 Tel: [phone] 
                                                   3030 
 Java Capital 
  JSE Sponsor                                      Tel: [phone] 
                                                   3050 
 

Note to editors:

About Redefine International

Redefine International is an income focused FTSE 250 UK Real Estate Investment Trust (UK-REIT) committed to delivering superior distributions to its shareholders throughout the property cycle.

The Company's income driven total returns are underpinned by a diversified portfolio, together with an efficient capital structure. The continued transformation of both the corporate structure and asset base offer a solid foundation to drive further value. At 28 February 2017, the diversified portfolio, independently valued at GBP1.5 billion, is focused in Europe's two strongest economies, being the United Kingdom and Germany. The portfolio is weighted towards well located properties across a range of sectors, including retail, offices, distribution and hotels, which benefit from strong demand and from which they can capture income and value growth by attracting high calibre occupiers on long leases. The Company's investment philosophy is to effectively allocate recycled capital from mature assets into sectors and locations with strong occupier fundamentals and individual assets with realisable upside.

The secure income stream is supported by a diversified portfolio and tenant base, with a WAULT of 7.5 years complemented by an average debt maturity of 6.8 years of which 97% of interest costs are either fixed or capped. The Company is focused on all aspects impacting shareholder distributions and boasts one of the lowest cost ratios in the industry whilst continuously driving lower cost of debt.

Redefine International holds a primary listing on the London Stock Exchange and a secondary listing on the Johannesburg Stock Exchange and is included within the FTSE 250, EPRA and GPR indices.

For more information on Redefine International, please refer to the Company's website www.redefineinternational.com.

This information is provided by RNS

The company news service from the London Stock Exchange

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May 30, 2017 04:45 ET (08:45 GMT)