Capital & Regional plc Dividend Finalisation Announcement (0110U)

TIDMCAL

RNS Number : 0110U

Capital & Regional plc

26 March 2019

26 March 2019

CAPITAL & REGIONAL PLC ("Capital & Regional" or "the Company")

UK company number 01399411

LSE share code: CAL

ISIN: GB0001741544

LEI: 21380097W74N9OYF5Z25

DIVIDEND FINALISATION ANNOUNCEMENT

Further to the announcement made by the Company on 14 March 2019 a final dividend of 0.60 pence per share (the "Dividend") has been declared, to be paid 100% as a property income distribution ("PID"). The PID will be subject to a deduction of a 20% UK withholding tax unless exemptions apply.

The Dividend is payable on Thursday, 23 May 2019 to shareholders registered on the UK principal register ("UK Shareholders"), and the South African branch register ("SA Shareholders"). The Dividend will be paid out of the United Kingdom. The Record Date for both UK Shareholders and SA Shareholders is at the close of business on Friday, 5 April 2019. No scrip alternative will be offered for this dividend payment.

(i) Shareholders receiving the dividend in cash:

SA shareholders are advised that the exchange rate for the dividend, based on the 25 March 2019 spot rate, will be 18.9295 ZAR to 1.00 GBP (the "Exchange Rate"), resulting in a gross local dividend amount of 11.35770 ZAR cents per share. Accordingly, shareholders will be paid a cash dividend per share as follows:

 
 PID                                       UK Shareholders   SA Shareholders 
                                            (GBP pence)       (ZAR cents) 
 Gross amount of PID                       0.60              11.35770 
                                          ----------------  ---------------- 
 Less 20% UK withholding tax *             (0.12)            2.27154 
                                          ----------------  ---------------- 
 Net PID dividend payable**                0.48              9.08616 
                                          ----------------  ---------------- 
 Less effective 5% SA dividends tax for 
  SA Shareholders***                       n/a               0.56789 
                                          ----------------  ---------------- 
 Net PID dividend payable***               n/a               8.51828 
                                          ----------------  ---------------- 
 

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

** Net position after deducting UK withholding tax for both UK and SA Shareholders, but before SA shareholders have claimed back 5% from HMRC under the double tax agreement between the United Kingdom and South Africa in respect of the UK withholding tax.

*** SA dividends tax applies at the rate of 20% for SA Shareholders, but SA Shareholders receive a rebate of the UK withholding taxes suffered (which is effectively 15%, after taking into account the 5% refund).

TIMETABLE

The key dates in relation to the payment of the Dividend are:

 
                                                            2019 
-------------------------------------------  ------------------- 
 Last day to trade (SA shareholders)            Tuesday, 2 April 
 Shares trade ex-dividend on the JSE          Wednesday, 3 April 
 Shares trade ex-dividend on the LSE           Thursday, 4 April 
 Record date                                     Friday, 5 April 
 Payment of cash dividend CREST/CSDP/broker     Thursday, 23 May 
  accounts credited 
 
 

Notes:

1. JSE shareholders will receive a cash dividend in South African Rand, based on the conversion rate.

2. Share certificates (in respect of shares held on the South African register) may not be demateriliased or rematerialised between Wednesday, 3 April 2019 and Friday, 5 April 2019, both days inclusive.

3. Transfers of shares between sub-registers in the United Kingdom and South Africa may not take place between Tuesday, 26 March 2019 and Friday, 5 April 2019, both days inclusive.

TAX IMPLICATIONS FOR SA SHAREHOLDERS

Cash PID

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. 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 a 5% rebate from HMRC in terms of the DTA.

SA dividends tax, at a rate of 20%, will apply to cash PIDs to the extent that the Company shares are held on the SA share register, unless the beneficial owner of the dividend is exempt from dividends tax (e.g. if it is a South African resident company). SA resident shareholders can, however, claim a rebate against the SA dividends tax for any UK withholding tax suffered. Accordingly, 15% of the UK withholding tax may be claimed as a rebate against the 20% SA dividends tax.

In summary, therefore, 20% will be withheld in the UK, a further 5% will be withheld in SA (where appropriate), but South African resident shareholders will be entitled to claim back 5% from HMRC which will bring the overall total to 20%.

UK taxation

The receipt of the cash dividend may have tax implications for shareholders who are resident in the United Kingdom or other countries and such shareholders are advised to obtain appropriate advice from their professional advisors in this regard.

- ENDS -

For further information:

   Capital & Regional plc                         020 7932 8000 

Lawrence Hutchings

Stuart Wetherly

   FTI Consulting                                     020 3727 1000 

Richard Sunderland

Claire Turvey

Methuselah Tanyanyiwa

[e-mail]

About Capital & Regional plc

Capital & Regional is a UK focused specialist property REIT with a strong track record of delivering significant value enhancing retail and leisure asset management opportunities across its c. GBP0.9 billion portfolio of in-town, dominant community shopping centres.

Capital & Regional owns seven shopping centres in Blackburn, Hemel Hempstead, Ilford, Luton, Maidstone, Walthamstow and Wood Green. Capital & Regional manages these assets through its in-house expert property and asset management platform.

For further information see www.capreg.com.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

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March 26, 2019 05:00 ET (09:00 GMT)