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Declaration of scrip dividend and cash dividend alternative
FINBOND GROUP LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2001/015761/06)
JSE code: FGL
ISIN: ZAE000138095
Main Board – General Segment
("Finbond" or "the Company")
DECLARATION OF SCRIP DIVIDEND AND CASH DIVIDEND ALTERNATIVE
The Board of Directors of the Company has declared a 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"). Shareholders will, however, be entitled to elect to receive a
gross cash dividend alternative of 9.57071 cents per share ("cash dividend").
The ratio of entitlement is based on the volume weighted average traded price
per Finbond ordinary share on the JSE Limited over the five trading days up
to and including 14 February 2025, of 53.68333 cents per share, which will
be the issue price per Finbond share ("the issue price").
Shareholders are required to notify their duly appointed participant or
broker of their election in terms of the cash dividend. For the avoidance of
doubt, if no action is taken by shareholders, they will receive the scrip
dividend.
The last day to trade in the Company's shares cum the scrip dividend and cash
dividend is Tuesday, 25 March 2025. Consequently, no dematerialisation or
rematerialisation of the Company's shares may take place over the period from
Wednesday, 26 March 2025 to Friday, 28 March 2025, both days inclusive.
Trading in the Company's shares ex the scrip dividend and cash dividend
alternative will commence on Wednesday, 26 March 2025.
The ordinary shares to be allotted pursuant to the scrip dividend will be
issued from available treasury shares up to a maximum of 59 118 708 ordinary shares.
Any remainder will be issued as new fully paid ordinary shares, the value of
which will be capitalised from cash reserves of the company. At the date of
declaration, the company has 515 720 092 ordinary shares in issue.
The cash dividend is scheduled to be payable in South African Rand (ZAR) on
Monday, 31 March 2025 from the Company's cash reserves. Such dividend is
subject to and will be paid net of dividends tax of 20%, to be withheld and
paid to the South African Revenue Service. Such tax must be withheld unless
beneficial owners of such dividend have provided the necessary documentary
proof to the relevant regulated intermediary (being a broker, CSD
participant, nominee company or the Company's transfer secretaries, JSE
Investor Services (Pty) Ltd, PO Box 4844, Johannesburg, 2000 South Africa)
that they are exempt therefrom, or entitled to a reduced rate, as a result
of a double taxation agreement between South Africa and the country of tax
domicile of such owner.
The withholding tax, if applicable at the rate of 20%, will result in a net
cash dividend per share of 7.65657 cents per share, applicable to the cash
dividend. As the scrip dividend does not constitute a dividend as defined in
the Income Tax Act, no withholding tax is applicable thereon. However, there
are possible tax implications of receiving the scrip dividend and shareholders
are advised to obtain their own professional advice in this regard.
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.
The salient dates and times relating to the ca scrip dividend and cash
dividend alternative are as follows:
2025
Record date in order to receive the election Friday, 28 February
circular
Finalisation announcement for scrip dividend and
cash dividend on SENS Tuesday, 5 March
Circular and form of election posted to Wednesday, 5 March
shareholders
Last day to trade in order to be eligible
for scrip dividend/cash dividend Tuesday, 25 March
Shares trade ex-entitlement Wednesday, 26 March
Provisional listing of maximum number of shares
for the scrip dividend at commencement of trade on
the JSE Limited Wednesday, 26 March
SENS announcement in respect of the cash payment
applicable to fractional entitlements, based on
the volume weighted average price on Wednesday, 26
March 2025, discounted by 10%, by no later than Thursday, 27 March
11:00
Last day to elect to receive the cash dividend,
forms of election to reach the Transfer
Secretaries by 12:00 Friday, 28 March
Record date Friday, 28 March
Share certificates posted and Cash Dividend
payments made, CSDP/broker accounts
updated/credited, as applicable on Monday, 31 March
Announcement of the results of the
scrip dividend/cash dividend on SENS Monday, 31 March
Announcement of the results of the scrip
dividend/cash dividend in the press Tuesday, 1 April
Adjustment of number of new shares listed on or Wednesday, 2 April
about
Notes:
1. No shares will be dematerialised or rematerialised between Wednesday,
26 March 2025 and Friday, 28 March 2025 (both days inclusive).
2. All times quoted in this announcement are South African local times.
Any material change will be announced on SENS.
3. Finbond shareholders who have already dematerialised their shares
through a CSDP or broker must not complete the Form of Election but should
instruct their CSDP or broker as to their cash dividend election.
Dematerialised shareholders are required to notify their duly appointed CSDP
or broker of their cash dividend election in the manner and time stipulated
in the agreement governing the relationship between the shareholder and
his/her/its CSDP or broker.
A circular setting out full details of the scrip dividend and cash dividend
alternative and containing a form of election will be distributed to
shareholders on Wednesday, 5 March 2025 and will be available on the Company's
website hosted at www.finbondgroup.com.
Pretoria
21 February 2025
African Bank Limited (Business and Commercial Banking Division)
Date: 21-02-2025 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.
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