Shareholders are referred to the Company’s audited financial results for the year ended 31 December 2016, published on the Stock Exchange News Service (“SENS”) on 2 March 2017 in which it declared a final Scrip Distribution with the alternative to elect to receive a Cash Dividend of 65 cents per ordinary Mpact share.
The ratio applicable to the Scrip Distribution entitlement was announced on SENS on 13 March 2017, being 2.13816 Scrip Distribution shares for every 100 ordinary Mpact shares held on the Record Date, being Friday, 31 March 2017.
If the application of this ratio gives rise to a fraction of an ordinary Mpact share, such fraction will be rounded down to the nearest whole number, resulting in allocations of whole ordinary Mpact shares and a cash payment for the fraction (“Rounding Provision”).
In accordance with the requirements of the JSE Limited, the cash payment has been determined with reference to the volume weighted average price of an ordinary Mpact share traded on the JSE on Wednesday, 29 March 2017 (being the day on which an ordinary Mpact share began trading ‘ex’ the entitlement to receive the Scrip Distribution or Cash Dividend alternative), discounted by 10%.
Shareholders are accordingly advised that the basis applicable in determining the cash payment for the fractional entitlement is 2827 cents (3141 cents, discounted by 10%) or 2261.6 cents, net of applicable dividend withholding tax.
Example of fractional entitlement:
This example assumes that a Shareholder holds 100 ordinary shares at the close of business on the Record Date and does not elect to receive the Cash Dividend in respect of all or part of their shareholding.
New ordinary share entitlement = 100 x 2.13816%
= 2.13816 new ordinary shares. The Rounding Provision described above is then applied and the shareholder will receive:
2 Scrip Distribution shares in respect of the 100 ordinary shares held and a cash payment for the fractional entitlement of 0.13816 x 2827 = 390.57832 cents. This fractional entitlement payment will be subject to 20% dividend withholding tax, resulting in a net cash payment of 312.46266 cents.
Thursday, 30 March 2017
RAND MERCHANT BANK (A division of FirstRand Bank Limited)