Scrip

Scrip Dividend Scheme

Capital & Regional offers a scrip dividend scheme which enables ordinary shareholders to elect to receive new ordinary shares instead of a cash dividend. The introduction of the scheme was approved by shareholders at the 2016 Annual General Meeting.  Available on the following links are a flyer, summarising the key features of the scheme, the full scheme rules and a copy of the election mandate, as posted to relevant LSE shareholders. 

Scrip flyer

Scrip mandate form - LSE certificated shareholders

Scrip scheme rules

 

2017 Final Dividend

ZAR exchange rate

SA shareholders are advised that the exchange rate for the dividend will be 17.132 ZAR to 1.00 GBP (the “Exchange Rate”), resulting in a gross local dividend amount of 32.72212 ZAR cents per share.  Accordingly, shareholders who do not elect to receive New Ordinary Shares pursuant to the Scrip Dividend Scheme will be paid a cash dividend per share as follows:

PID

UK Shareholders

(GBP pence)

SA Shareholders

(ZAR cents)

Gross amount of PID 1.63p 27.92516 cents
Less 20% UK withholding tax* 0.326p 5.58503 cents
Net PID dividend payable** 1.304p 22.34013 cents
Less effective 5% SA dividends tax for SA Shareholders*** n/a 1.39626 cents
Net PID dividend payable*** n/a 20.94387 cents

* Certain categories of UK shareholders may apply for exemption, in which case the PID element will be paid gross of UK withholding tax. 

** Net position after deducting UK withholding tax for both UK and SA Shareholders, but before SA shareholders have claimed back 5% from HMRC under the double tax agreement between the United Kingdom and South Africa in respect of the UK withholding tax.

*** SA dividends tax applies at the rate of 20% for SA Shareholders, but SA Shareholders receive a rebate of the UK withholding taxes suffered (which is effectively 15%,  after taking into account the 5% refund).

Non-PID*

UK Shareholders

(GBP pence)

SA Shareholders

(ZAR cents)

Non-PID element

0.28p 4.79696 cents
Less 20% SA dividends tax for SA Shareholders** n/a 0.95939 cents
Net Non-PID dividend payable 0.28p 3.83757 cents

* Non-PID – taxed as a normal dividend for UK purposes, i.e. no UK withholding tax applicable.

** Certain categories of SA shareholders are exempt from SA dividends tax, e.g. SA resident companies.

 

Scrip pricing

The Scrip Calculation Price for UK shareholders is 51.77 pence, being the average of the middle market quotations of an Ordinary Share derived from the Daily Official List of the LSE for the last five dealing days ending on 9 April 2018, less the gross amount of Dividend per share. The Scrip Calculation Price for SA shareholders is 8.86924 ZAR, being the Scrip Calculation Price for UK shareholders, converted to Rand at the Exchange Rate.

The number of New Ordinary Shares to be allocated to shareholders electing to participate in the Scrip Dividend Scheme will be calculated by dividing the net value of the Dividend otherwise receivable by a Shareholder by the Scrip Calculation Price and rounding down to the nearest whole number. As no fraction of a new share will be issued, for UK shareholders any residual Cash Balance, i.e. the total value of the dividend receivable less the value of the shares allocated, will be rolled forward and factored into the Scrip calculation for the next relevant Dividend.  For SA shareholders, any residual Cash Balance will be paid in cash in the same way as the Dividend would have been paid had those shareholders not elected to receive the scrip alternative.

By way of illustration, a shareholder who holds 1,000 shares, and who elects to receive New Ordinary Shares pursuant to the Scrip Dividend Scheme (in respect of the PID element), will receive a number of New Ordinary Shares calculated as follows:

PID 

UK Shareholders

(GBP £)

SA Shareholders

(ZAR)

Net amount of PID dividend entitled to receive
(per (i) above x 1,000):

1.304p x 1000 = £13.04 223.40000 ZAR
Scrip Calculation Price £0.5177 8.86924  ZAR
Calculated number of new shares to which shareholder is entitled 25.18833 25.18818
Actual number of new shares received 25 25
Gross Cash Balance (multiply fractional entitlement by Scrip Calculation Price) £0.10 1.67 ZAR
Less effective 5% SA dividends tax on the cash balance payable (SA Shareholders)** n/a 0.08 ZAR
Net Cash Balance*** £0.10 1.59 ZAR

* A scrip dividend is not subject to SA dividends tax, therefore no SA dividends tax is deducted for SA Shareholders in this instance, only UK withholding tax. SA shareholders may claim back 5% from HMRC under the double tax agreement between the United Kingdom and South Africa in respect of the UK withholding tax

** SA dividends tax applies at the rate of 20% for SA Shareholders on the cash portion, but SA Shareholders obtains a rebate of the UK withholding taxes suffered (which is effectively 15% after taking into account the 5% refund)

*** For SA Shareholders to be paid a Cash Balance, the Cash Balance will be subject to 20% SA dividends tax. The Net Cash Balance due to SA Shareholders has been determined after taking SA dividends tax and UK withholding tax into account in the same manner as a cash PID dividend.