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Scrip Dividend – Reminder and Clarification of Tax Implications on Fractional Entitlement, STT on Transfer of shares
FINBOND GROUP LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2001/015761/06)
JSE code: FGL
ISIN: ZAE000138095
("Finbond" or "the Company")
Scrip Dividend – Reminder and Clarification of Tax Implications on the
Fractional Entitlement and STT on Transfer of Shares
Shareholders are referred to the Company's announcements on SENS dated 21
February 2025 and 11 March 2025 respectively and the circular that was
distributed to shareholders on Wednesday, 5 March 2025, in respect of the
scrip dividend of 17.82809 for every 100 ordinary shares, to ordinary
shareholders recorded in the Finbond register on the record date, being
Friday, 28 March 2025 ("scrip dividend") and the gross cash dividend
alternative of 9.57071 cents per share("cash dividend").
Shareholders who have already dematerialised their Finbond shares are
reminded to notify their duly appointed participant or broker of their
election in terms of the cash dividend by no later than 12:00 on Friday, 28
March 2025. For the avoidance of doubt, if no action is taken by shareholders,
they will receive the scrip dividend.
Shareholders, who are holding certificated Finbond shares and wish to elect
to receive the cash dividend alternative, must complete the Form of Election
included in the circular in accordance with the instructions contained
therein and lodge it with, or post it to JSE Investor Services (Pty) Ltd,
One Exchange Square, 2 Gwen Lane, Sandown, Sandton, 2196, (PO Box 4844,
Johannesburg, 2000) or email it to specialprojects@jseinvestorservices.co.za
so as to be received by them by no later than 12:00 on Friday, 28 March 2025.
As the scrip dividend does not constitute a dividend as defined in the Income
Tax Act, no withholding tax is applicable thereon. The ordinary shares to be
allotted pursuant to the scrip dividend will be issued from available
treasury shares. Based on elections received to date no new shares will be
issued. Shareholders are advised that the transfer of treasury shares will
be subject to Securities Transfer Tax ("STT") levied at 0.25%. Shareholders
are advised to obtain their own professional advice with regards to the
possible tax implications of receiving the scrip dividend.
Where a shareholder's entitlement to new ordinary shares calculated in
accordance with the scrip dividend formula gives rise to a fraction of a new
ordinary share, such entitlement will be rounded down to the nearest whole
number resulting in allocations of whole securities and a cash payment to
the shareholder for the fraction. Any fractional entitlement payment will
also be subject to 20% withholding tax, as correctly stated in the
abovementioned SENS announcements dated 21 February 2025 and 11 March 2025.
Pretoria
19 March 2025
Sponsor: African Bank Limited (Business and Commercial Banking Division)
Date: 19-03-2025 05:00:00
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The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
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indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
