Intu Properties plc: Confirmation of Exchange Rate and Calculation Prices

Intu Properties plc: Confirmation of Exchange Rate and Calculation Prices
4 OCTOBER 2013 
2013 INTERIM DIVIDEND: 
TIMETABLE, EXCHANGE RATE AND SCRIP CALCULATION PRICES 
On 1 August 2013, the Directors announced an interim dividend for 2013 of 5
pence per ordinary share payable on 19 November 2013 (the "Dividend"). As
confirmed on 27 September 2013, the Directors are offering shareholders a scrip
alternative to the 2013 interim cash dividend. The dividend will be paid as
follows: 
* If taken in cash, this dividend will be wholly paid as a Property Income 


    Distribution ("PID") which will be subject to deduction of a 20 per cent UK
    withholding tax unless exemptions apply.
      * Shareholders who make an election to receive shares will receive shares
    based on the full 5.0 pence dividend being paid as a non-PID. As a non-PID,
    this will be treated as an ordinary UK company dividend.


The Company is now pleased to announce the share price applicable to the scrip
alternative to the cash dividend and, for its South African shareholders, the
exchange rate applicable to the dividend. The salient dates for payment of the
dividend published in the announcement dated 27 September 2013 remain
unchanged. 
Further details of the scrip dividend alternative are contained in the Scrip
Dividend Scheme Booklet, and the related Election forms, which are available
from www.intugroup.co.uk and from the Company's Registrars. 
(i) Shareholders receiving the dividend in cash: 
The Company confirms that the South African Rand exchange rate for the 2013
interim dividend will be 16.298 ZAR to 1 GBP. Shareholders who do not make an
election to receive shares will receive a cash dividend per ordinary share
which will be paid wholly as a PID as follows: 
                            UK Shareholders         SA Shareholders 
                                                                   
Gross amount of PID              GBP pence 5.0p         81.490 ZA cents 
                                                                   
*Less 20% withholding tax        GBP pence 1.0p         16.298 ZA cents 
                                                                   
Net PID dividend payable         GBP pence 4.0p         65.192 ZA cents 
*Certain categories of UK shareholdermay apply for exemption, in which case the
PID will be paid gross. 
(ii) Shareholders who elect to take shares: 
(a)Dividend equivalent values: 
Shareholders who make an election to receive shares instead of the cash
dividend will receive shares with a value equivalent to a dividend per ordinary
share as follows: 
                            UK Shareholders         SA Shareholders 
                                                                   
Non-PID dividend                 GBP pence 5.0p         81.490 ZA cents 
(b) Share entitlement: Shareholders on the UKshare register: 
The price setting period for the Scrip price calculation was 27 September to 3
October 2013 inclusive. Based on the average middle market quotations for each
day in the price setting period on the LSE less the gross amount of dividend as
set out above, the Scrip Calculation Price applicable to UK shareholders is GBP
pence 317.12. The scrip share allocation will be as follows: 


                                                     Non-PID        
                                                     dividend       


                                                             
No. of shares required to be held for one new         63.424     
share                                                             
The number of shares to be allocated will be calculated by dividing the total
value of the dividend otherwise receivable by the shareholder by the Scrip
Calculation Price and rounding down to the nearest whole number. Any fractional
entitlement, i.e. the total value of the dividend receivable less the value of
the shares allocated, will be paid out as cash but still treated as a non-PID
dividend. 
(c) Share entitlement: Shareholders on the South Africashare register: 
The exchange rate for the calculation of share entitlement is as stated above,
16.298 ZAR to 1 GBP. The price setting period for the Scrip price calculation
was 27 September to 3 October 2013 inclusive. Based on the average middle
market quotations for each day in the price setting period on the JSE less the
gross amount of dividend as set out above, the Scrip Calculation Price
applicable to South African shareholders is 5,137.75 ZA cents. The scrip share
allocation will be as follows: 


                                                    Non-PID     
                                                    dividend    


                                                            
No. of shares required to be held for one new       63.04761    
share                                                            
The number of shares to be allocated will be calculated by dividing the total
value of the dividend otherwise receivable by the shareholder by the Scrip
Calculation Price and rounding down to the nearest whole number. Any fractional
entitlement (which for these purposes will be treated as a residual dividend),
i.e. the total value of the dividend receivable less the value of the shares
allocated, will be paid out as cash but still treated as a non-PID dividend. 
By way of illustration of the above, the scrip share calculation will be as
follows for a shareholder who holds 100 shares: 


                                           Non-PID
                                           dividend


                                                   
Amount of dividend entitled to receive      R81.49     
(per (a) above x 100):                                  
                                                   
No. of shares entitled to receive:                      


                                                       
             Calculation:                100/63.04761  
                                                       
          No. of new shares:               1.58610     


                                                   
Example of fractional entitlement                      
calculation:                                            
                                                   
Fraction (from above):                     0.58610      
                                                   
Fractional entitlement (paid in cash):      R30.11      
                                                   
(multiply fraction by scrip price)                      
(iv) Notes for South African shareholders 
On application by South African shareholders, 5 per cent of the 20 per cent UK
withholding tax deducted from a PID is claimable from the UK's HM Revenue &
Customs ("HMRC"), resulting in an effective UK withholding tax rate of 15 per
cent. The Company will account to HMRC in sterling for the total UK withholding
tax deducted. Settlement of any claims for refund will be calculated and
settled in sterling by HMRC. 
The information given in section (i) above will assist with applications for
refunds. For information on PIDs and refund claims, including claim forms and
guidance on how to complete them, visit
http://www.intugroup.co.uk/investors/shareholders-bondholders/real-estate-investment-trust/. 
No secondary tax on companies (STC) credits will be available to be utilised
against any SA Dividends Tax withheld on the payment of the interim dividend.
The number of shares in issue as at the declaration date was 966,994,656
ordinary shares of 50p each. 
SA Taxation summary: 
Where the 2013 interim dividend is paid in cash, it will constitute a foreign
dividend and so will be exempt from South African income tax, but subject to
deduction of SA Dividends Tax unless an exemption or rebate applies. For cash
PIDs the liability to Dividends Tax will be offset by the net UK withholding
tax of 15 per cent, resulting in no Dividends Tax being deducted. 
Where an election to receive shares under the Scrip Dividend Scheme has been
made it is our understanding that it will not constitute a foreign dividend.
Under current legislation, such shares will not therefore be subject to
Dividends Tax or income tax, but the full value of the shares on eventual
disposal will be subject to Capital Gains Tax with no base cost allowed. It is
also our understanding that where an election to receive shares under the Scrip
Dividend Scheme has been made, any fractional entitlements paid in cash to
shareholders will be treated in the same manner as that applicable to the
underlying element of the dividend, in this case a non-PID. Therefore cash
residuals payable to shareholders electing to receive shares in respect of the
2013 interim dividend will be subject to deduction of South African Dividends
Tax. 
The above information, and the guidelines on the taxation of dividends,
including when taken as scrip shares, contained in the Scheme Booklet, is
provided as a general guide based on the Company's understanding of the law and
practice currently in force. Any Shareholder who is in any doubt as to their
tax position should seek independent professional advice. 
END 
-0- Oct/04/2013 10:30 GMT
 
 
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