Mediclinic International plc Tax Treatment for South African Dividends (9151C)

TIDMMDC

RNS Number : 9151C

Mediclinic International plc

20 June 2019

Mediclinic International plc

(Incorporated in England and Wales)

Company Number: 08338604

LSE Share Code: MDC

JSE Share Code: MEI

NSX Share Code: MEP

ISIN: GB00B8HX8Z88

LEI: 2138002S5BSBIZTD5I60

South African income tax number: 9950122714

("Mediclinic", the "Company" or the "Group")

20 June 2019

TAX TREATMENT OF ORDINARY SHARE DIVIDEND FOR SHAREHOLDERS ON THE SOUTH AFRICAN REGISTER

Background

Shareholders on the South African register of the Company are referred to Mediclinic's announcement of the results for the year ended 31 March 2019 and proposed dividend announcement released on the Stock Exchange News Service and on the Regulatory News Service on 23 May 2019, confirming that the Board of Directors of Mediclinic had proposed a final dividend from retained earnings of 4.70 pence per ordinary share for the year ended 31 March 2019 for approval by the Company's shareholders at the annual general meeting on Wednesday, 24 July 2019.

The final dividend will be paid on Monday, 29 July 2019 to all ordinary shareholders who are on the register of members at the close of business on the record date of Friday, 14 June 2019.

Shareholders on the South African register will be paid the ZAR cash equivalent of 86.24500 cents (68.99600 cents net of dividend withholding tax) per share. A dividend withholding tax of 20% will be applicable to all shareholders on the South African register who are not exempt therefrom. The ZAR cash equivalent has been calculated using the following exchange rate: GBP1: ZAR18.35, being the 5-day average GBP/ZAR exchange rate (Bloomberg) on Friday, 17 May 2019 at 3:00pm GMT.

Tax treatment for shareholders on the South African register

South African tax resident shareholders on the South African register:

In terms of the Company's Dividend Access Trust structure, eligible South African tax resident shareholders on the South African register set out below will receive a component of the dividend, namely 85.21178 cents per share, from the Dividend Access Trust and therefore regarded as a local South African dividend, with the remaining component, namely 1.03322 cents per share, being received from the Company and therefore regarded as a foreign non-South African dividend. For purposes of South African dividend withholding tax, the entire dividend of 86.24500 cents per share is taxable at a rate of 20%, unless an applicable exemption applies:

 
                      1.                         in the case of shares held in certificated form, eligible 
                                                  shareholders who are registered on the South African 
                                                  register with an address in South Africa (other than 
                                                  PLC Nominees Proprietary Limited (or any successor 
                                                  entity through which shares held in dematerialised 
                                                  form are held); and 
                      2.                         in the case of shares held in dematerialised form, 
                                                  in respect of whom the South African transfer secretaries 
                                                  of the Company have determined, in good faith and by 
                                                  reference to the information provided to them by the 
                                                  eligible shareholders and/or their brokers and/or central 
                                                  securities depository participants, that such eligible 
                                                  shareholders are either (i) tax resident in South Africa 
                                                  or (ii) have an address in South Africa and have not 
                                                  expressly indicated that they are not tax resident 
                                                  in South Africa as at the dividend record date. 
 

Non-South African tax resident shareholders on the South African register:

Non-South African tax resident shareholders on the South African register will be paid the dividend by the Company in the usual way and not through the Dividend Access Trust. The entire dividend of 86.24500 cents per share payable to such shareholders will therefore be regarded as a foreign dividend and exempt from South African dividend withholding tax, provided that the relevant exemption forms have been completed and submitted as prescribed.

About Mediclinic International plc

Mediclinic is an international private healthcare services group, established in South Africa in 1983, with divisions in Switzerland, Southern Africa (South Africa and Namibia) and the United Arab Emirates.

The Group's core purpose is to enhance the quality of life.

Mediclinic is focused on providing specialist-orientated, multi-disciplinary services across the

continuum of care in such a way that the Group will be regarded as the most respected and trusted provider of healthcare services by patients, medical practitioners, funders and regulators of healthcare in each of its markets.

Mediclinic comprises 77 hospitals, five sub-acute hospitals, 12 day case clinics and 21 outpatient clinics. Hirslanden operates 18 hospitals, two day case clinics and three outpatient clinics in Switzerland with more than 1 900 inpatient beds; Mediclinic Southern Africa operates 52 hospitals, five sub-acute hospitals and 12 day case clinics with more than 8 500 inpatient beds; and Mediclinic Middle East operates seven hospitals, two day case clinics and 21 outpatient clinics with more than 900 inpatient beds in the United Arab Emirates.

The Company's primary listing is on the London Stock Exchange ('LSE') in the United Kingdom, with secondary listings on the JSE Ltd in South Africa and the Namibian Stock Exchange in Namibia.

Mediclinic also holds a 29.9% interest in Spire Healthcare Group plc, a leading private healthcare group based in the United Kingdom and listed on the LSE.

For further information, please contact:

Company Secretary, Link Company Matters Limited

Jayne Meacham / Caroline Emmet

[phone]

Investor queries

James Arnold, Head of Investor Relations, Mediclinic International plc

[phone]

[e-mail]

Media queries

FTI Consulting

Deborah Scott/Brett Pollard - United Kingdom

[phone]

Sherryn Schooling - South Africa

[phone]

Registered address: 6th Floor, 65 Gresham Street, London, EC2V 7NQ, United Kingdom

Website: www.mediclinic.com

Joint corporate brokers: Morgan Stanley & Co International plc and UBS Investment Bank

JSE sponsor: Rand Merchant Bank (A division of FirstRand Bank Limited)

NSX sponsor: Simonis Storm Securities (Pty) Ltd

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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June 20, 2019 09:00 ET (13:00 GMT)