Stenprop Limited Scrip dividend finalisation (4257M)

TIDMSTP

RNS Number : 4257M

Stenprop Limited

08 January 2019

STENPROP LIMITED

(Registered in Guernsey)

(Registration number 64865)

   LSE share code: STP    JSE share code: STP 

ISIN: GG00BFWMR296

("Stenprop" or the "Company")

FINALISATION ANNOUNCEMENT IN RESPECT OF AN ELECTION TO RECEIVE EITHER A CASH DIVID OR A SCRIP DIVID

8 January 2019

Stenprop shareholders are referred to the circular ("circular") and the announcement issued on Thursday, 20 December 2018 in respect of an election to receive the interim dividend of 3.375 pence per share (the "dividend") for the six months ended 30 September 2018, either as a cash dividend (the "cash dividend") or as a scrip dividend (the "scrip dividend"). Shareholders are now advised that the dividend will be paid as follows:

- 0.60 pence (17.78%) will comprise a property income distribution ("PID"). The PID will be subject to a deduction of a 20% United Kingdom ("UK") withholding tax unless exemptions apply.

- 2.775 pence (82.22%) will comprise a non-PID. The non-PID will be treated as an ordinary UK company dividend, with no UK withholding tax deducted.

(i) Shareholders receiving the dividend in cash:

South African ("SA") shareholders are advised that the exchange rate for the dividend will be 17.68 ZAR to 1.00 GBP (the "exchange rate"), as obtained by the Company on Monday, 7 January 2019, resulting in a gross local dividend amount of 59.67 ZAR cents per share. Accordingly, shareholders who do not elect to receive new ordinary shares pursuant to the scrip dividend will be paid a cash dividend per share as follows:

 
                                           UK Shareholders   SA Shareholders 
 PID                                           (GBP pence)       (ZAR cents) 
 Gross amount of PID                                  0.60           10.6080 
                                          ----------------  ---------------- 
 Less 20% UK withholding tax *                        0.12            2.1216 
                                          ----------------  ---------------- 
 Net PID dividend payable**                           0.48            8.4864 
                                          ----------------  ---------------- 
 Less effective 5% SA dividends tax for 
  SA Shareholders***                                   n/a            0.5304 
                                          ----------------  ---------------- 
 Net PID dividend payable***                           n/a            7.9560 
                                          ----------------  ---------------- 
 

* 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 to SA Shareholders who do not qualify for an exemption from SA dividends tax (SA tax resident companies and certain exempt institutions are, amongst others, exempt from SA dividends tax) at the rate of 20%, reduced by the UK withholding taxes suffered, which cannot be recovered from the UK (which is effectively 15%, after taking into account the 5% refund which may be obtained from the UK).

 
                                                    UK Shareholders   SA Shareholders 
 Non-PID*                                               (GBP pence)       (ZAR cents) 
 Non-PID element                                              2.775           49.0620 
                                                   ----------------  ---------------- 
 Less 20% SA dividends tax for SA Shareholders**                n/a            9.8124 
                                                   ----------------  ---------------- 
 Net Non-PID dividend payable                                 2.775           39.2496 
                                                   ----------------  ---------------- 
 

* Non-PID - taxed as a normal dividend for UK purposes, i.e. no UK withholding tax applicable.

** Certain categories of SA shareholders are exempt from SA dividends tax, e.g. SA resident companies.

(ii) Shareholders who elect to take shares:

The scrip dividend reference price for UK shareholders is 100.0282 pence ("scrip dividend reference price"), being the average closing price of Stenprop shares traded on the London Stock Exchange ("LSE") over a period of five days as at Friday, 4 January, less the dividend. The scrip dividend reference price for SA shareholders is 18.0013 ZAR, being the scrip dividend reference price for UK shareholders, converted to Rand at the exchange rate.

The number of new ordinary shares to be allocated to shareholders electing to participate in the scrip dividend will be calculated by dividing the net value of the dividend otherwise receivable by a shareholder by the scrip dividend reference price and rounding down to the nearest whole number. As no fraction of a new share will be issued, any entitlement which results in a fractional share will be rounded down to the nearest whole number, with a cash payment to be made to the relevant shareholder in respect of the fraction ("cash payment").

By way of illustration, a shareholder who holds 1,000 shares, and who elects to receive new ordinary shares pursuant to the scrip dividend, will receive a number of new ordinary shares calculated as follows:

 
                                                  UK Shareholders   SA Shareholders 
 In respect of the PID                                  (GBP GBP)             (ZAR) 
 PID dividend net of UK withholding tax 
  entitled to receive* 
  (As per (i) above x 1,000):                             GBP4.80       84.8640 ZAR 
                                                 ----------------  ---------------- 
 Scrip dividend reference price                         GBP1.0003       18.0013 ZAR 
                                                 ----------------  ---------------- 
 Calculated number of new shares to which 
  shareholder is entitled                                  4.7986            4.7143 
                                                 ----------------  ---------------- 
 Actual number of new shares received                           4                 4 
                                                 ----------------  ---------------- 
 Gross Cash Balance (multiply fractional 
  entitlement by scrip dividend reference 
  price)                                                GBP0.7988       12.8583 ZAR 
                                                 ----------------  ---------------- 
 Less effective 5% SA dividends tax on 
  the cash payment payable (SA Shareholders)**                n/a        0.6429 ZAR 
                                                 ----------------  ---------------- 
 Net cash payment***                                    GBP0.7988       12.2154 ZAR 
                                                 ----------------  ---------------- 
 

* A scrip dividend is not subject to SA dividends tax, therefore no SA dividends tax is deducted for SA Shareholders in this instance, only UK withholding tax. SA shareholders may claim 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 to SA Shareholders who do not qualify for an exemption from SA dividends tax (SA tax resident companies and certain exempt institutions are, amongst others, exempt from SA dividends tax) at the rate of 20% reduced by the UK withholding taxes suffered which cannot be recovered from the UK (which is effectively 15%, after taking into account the 5% refund which may be obtained from the UK).

*** The net cash payment due to SA shareholders has been determined after taking SA dividends tax and UK withholding tax into account in the same manner as a cash PID dividend.

 
                                              UK Shareholders   SA Shareholders 
 In respect of the non-PID element                  (GBP GBP)             (ZAR) 
 Gross amount of non-PID dividend entitled 
  to receive 
  (Gross Non-PID per (i) above x 1,000):             GBP27.75      490.6200 ZAR 
                                             ----------------  ---------------- 
 Scrip dividend reference price                     GBP1.0003       18.0013 ZAR 
                                             ----------------  ---------------- 
 Calculated number of new shares to which 
  shareholder is entitled                             27.7417           27.2547 
                                             ----------------  ---------------- 
 Actual number of new shares received                      27                27 
                                             ----------------  ---------------- 
 Gross cash payment (multiply fractional 
  entitlement by scrip dividend reference 
  price)                                            GBP0.7419        4.5849 ZAR 
                                             ----------------  ---------------- 
 Less 20% SA dividends tax on the cash 
  payment payable (SA shareholders)*                      n/a        0.9170 ZAR 
                                             ----------------  ---------------- 
 Net cash payment                                   GBP0.7419        3.6679 ZAR 
                                             ----------------  ---------------- 
 

* For SA shareholders who do not qualify for an exemption from SA dividends tax (SA tax resident companies and certain exempt institutions are, amongst others, exempt from SA dividends tax), the cash payment will be subject to 20% SA dividends tax. The net cash payment due to SA shareholders has been determined after taking SA dividends tax into account in the same manner as a cash non-PID dividend.

TIMETABLE

The salient dates and times announced on 20 December 2018 remain unchanged.

TAX IMPLICATIONS

The receipt of the cash dividend or electing to receive the scrip dividend may have tax implications for shareholders. Shareholders are referred to the general summary of certain limited aspects of the taxation treatment of distributions paid by the Company for SA resident shareholders and UK resident shareholders included in paragraph 6 of the circular. Shareholders are advised to obtain appropriate advice from their professional advisors regarding the tax consequences of the cash dividend and the scrip dividend.

For further information:

Stenprop Limited [phone]

Paul Arenson

Patsy Watson

Julian Carey

Numis Securities Limited (Financial Adviser) [phone]

Hugh Jonathan

Vicki Paine

Tavistock (PR Adviser) [phone]

James Whitmore

James Verstringhe

Kirsty Allan

Java Capital Trustees and Sponsors Proprietary Limited [phone]

(JSE Sponsor)

About Stenprop:

Stenprop is a Guernsey-registered UK REIT. The objective of the Company is to deliver sustainable growing income to its investors. Stenprop's investment policy is to invest in a diversified portfolio of UK multi-let industrial (MLI) properties with the strategic goal of becoming the leading MLI business in the UK. For further information, go to www.stenprop.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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January 08, 2019 03:30 ET (08:30 GMT)