Shareholders are referred to the Company's unaudited interim financial results for the six months ended 30 June 2017, published on the Stock Exchange News Service ("SENS") on 8 August 2017 and in the press on 10 August 2017, in which it declared an interim Scrip Distribution with the alternative to elect to receive a Cash Dividend of 15 cents per ordinary Mpact share.
The ratio applicable to the Scrip Distribution entitlement was announced on SENS on 29 August 2017, being 0.54985 Scrip Distribution shares for every 100 ordinary Mpact shares held on the Record Date, being Friday, 8 September 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, 6 September 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 2414 cents (2682 cents, discounted by 10%), or 1931.2 cents, net of applicable dividend withholding tax.
Example of fractional entitlement:
This example assumes that a Shareholder holds 1000 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 0.54985%
= 0.54985 new ordinary shares. The Rounding Provision described above is then applied and the shareholder will receive:
0 Scrip Distribution shares in respect of the 100 ordinary shares held and a cash payment for the fractional entitlement of 0.54985 x 2414 = 1327.3379 cents. This fractional entitlement payment will be subject to 20% dividend withholding tax, resulting in a net cash payment of 1061.87032 cents.
Thursday, 7 September 2017
RAND MERCHANT BANK (A division of FirstRand Bank Limited)