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Cape Town - Investment holding company Brait [JSE:BAT] announced on Friday that the bonus share issue with cash dividend alternative proposed by its directors was approved by shareholders at the annual general meeting.
The company's audited results announcement included the bonus share issue conversion ratio of 0.86394 new shares for every 100 Brait shares held by shareholders on the last day to trade, which was August 8 2016.
Brait's investment portfolio consists of sizeable unlisted businesses operating in the broad consumer sector. Its shares are listed on the Euro MTF market of the Luxembourg Stock Exchange and also on the JSE. Its largest shareholder is billionaire Christo Wiese.
Shareholders were also advised that where a shareholder's entitlement to new shares calculated in accordance with the this formula gives rise to a fraction of an ordinary share, such fraction would be rounded down to the nearest whole number with the fraction being paid in cash, irrespective of whether the shareholder has completed a cash election form or not.
The fraction paid in cash will be deemed a cash dividend and treated as such for tax purposes.
The fraction rate is €6.95/R103.44 and has been calculated as the volume weighted average price of a Brait share traded on the Lux SE and JSE on August 10 2016 - the day on which the Brait share began trading "ex" the entitlement to receive the bonus share issue or cash dividend alternative - discounted by 10% in accordance with the JSE listing requirements.
A dividend withholding tax of 15% will be applicable to all shareholders who are not exempt from such tax. If dividends tax does apply, then the net fraction rate paid will be €5.9075/R87.9240.
