Base cost tax calculation-Rep
Investec PLC
29 April 2003
The following replaces the Base Cost Tax Calculation announcement released 16
April 2003 at 11:29 under RNS number 1062K. The previous announcement omitted
the tables of information, the full announcement appears below.
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INVESTEC LIMITED INVESTEC PLC
(Formerly Investec Group Limited) (Incorporated under the United Kingdom
(Incorporated in the Republic of Companies Act 1985 and registered in
South Africa) England and Wales with registration number
(Registration number 1925/002833/06) 3633621)
Share code on the JSE: INL Share code on the JSE: INP
ISIN code: ZAE000040531 ISIN code: GB0031773103
Share code on the NSX: IVD ('Investec PLC')
Share code on the BSE: INV.BT
('Investec Limited')
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BASE COST FOR INVESTEC LIMITED ORDINARY SHARES AND INVESTEC PLC ORDINARY SHARES
FOR THE PURPOSE OF SOUTH AFRICAN TAX CALCULATIONS
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Investec Limited members and Investec PLC members are referred to the circular
to Investec Limited members and Investec Holdings Limited ('Inhold') members
dated 20 June 2002 regarding the unbundling by Inhold and Investec Limited of
Investec Limited ordinary shares and Investec PLC ordinary shares, respectively,
pursuant to board of directors resolutions taken on 19 February 2002, and
implemented on 18 July 2002 and 19 July 2002 respectively.
The South African taxation considerations of the unbundling of Investec Limited
and Investec PLC ordinary shares by Inhold and Investec Limited, respectively,
were set out in paragraph 7 of the said circular. The portion of the
distribution which constitutes a dividend and the portion that constitutes a
capital distribution as well as the base cost for Capital Gains Tax purposes of
the Investec Limited ordinary shares and/or the Investec PLC ordinary shares
received by Investec Limited members and Inhold members who hold/held their
Investec Limited and/or Inhold ordinary shares as capital assets and who elect
to use the valuation date and weighted average methods of determining the base
cost of their Investec Limited and Inhold ordinary shares, has now been
finalised as set out below. Members who elect any of the alternative methods for
determining such base costs should seek professional advice in this regard.
The methodology followed in the calculations set out below has been approved by
the South African Revenue Service, although specific approval has not been given
in respect of the amounts and valuations.
Inhold members
The following transactions took place in July 2002 under the unbundling
provisions of section 60 of the Income Tax Act No 113 of 1993, as amended:
•Investec Holdings Ltd unbundled its shareholding of 31 847 972 shares in
Investec Group Ltd to its shareholders on 18 July 2002; and
•Investec Group Ltd unbundled its shareholding of 65 382 057 shares in
Investec Plc to its shareholders (including the Investec Holdings Ltd
shareholders who received Investec Group Ltd shares in the first unbundling)
on 19 July 2002.
In each case, a portion of the shares received constitutes a dividend in the
recipient's hands and a portion constitutes a capital distribution.
Immediately prior to the above unbundling transactions, as part of the
restructuring transactions to facilitate the implementation of the Dual Listed
Companies structure, the share capital of Investec Group Ltd was restructured by
way of a share split followed by a capital reduction and consolidation of
shares. The net effect of this was that for each 100 Investec Holdings Ltd
shares previously held by a shareholder he now holds 31.8 shares in Investec
Group Ltd and 57.6 shares in Investec plc (rounded to the nearest share as
appropriate). (See paragraph 4.6 on page 22 of the circular to shareholders.)
_____________________________
Inhold members
Rand
Base cost of an Inhold ordinary share at 1 October 2001 138.03
Less: Inhold capital portion of the distribution - 23.82
Revised base cost per Inhold ordinary share 114.21
Note: The revised base cost results in a capital gains loss on the liquidation
of Inhold if the Inhold ordinary shares were held for at least two years prior
to date of liquidation, and the weighted average basis of determining the base
cost of all listed shares has been elected. If the Inhold ordinary shares were
held for less than two years, then the provisions of paragraph 19 of the 8th
Schedule to the Income Tax Act, 1962 (Act 58 of 1962), as amended need to be
applied. This loss for CGT purposes can be claimed once the liquidator has made
an announcement in terms of paragraph 77 of the 8th schedule.
As at the date of this announcement, the liquidation of Inhold has not been
completed
Base cost per Investec Limited ordinary share received 139.51
Less: Investec Limited capital portion of the distribution - 41.97
Pro forma revised base cost per Investec Limited ordinary share 97.54
(before the Investec Limited 37 for 100 share consolidation)
Revised base cost per Investec Limited ordinary share received ______
(after the Investec Limited 37 for 100 share consolidation) 263.62
Base cost per Investec PLC ordinary share received 139.91
Inhold dividend portion of the distribution 96.22
_____________________________
Investec Limited members
The following transactions took place in July 2002 under the unbundling
provisions of section 60 of the Income Tax Act No 113 of 1993, as amended:
•Investec Group Ltd unbundled its shareholding of 65 382 057 shares in
Investec Plc to its shareholders on 19 July 2002.
A portion of the shares received constitutes a dividend in the recipient's hands
and a portion constitutes a capital distribution.
Immediately prior to the above unbundling transactions, as part of the
restructuring transactions to facilitate the implementation of the Dual Listed
Companies structure, the share capital of Investec Group Ltd was restructured by
way of a share split followed by a capital reduction and consolidation of
shares. The net effect of this was that for each 100 shares previously held by a
shareholder he now holds 37 shares in Investec Group Ltd. (See paragraph 4.6 on
page 22 of the circular to shareholders.)
_____________________________
Investec Limited members
Rand
Base cost of an Invested Limited ordinary share at 1 October 2001 161.18
Less: Investec Limited capital portion of the distribution - 41.97
Pro forma revised base cost per Investec Limited ordinary share 119.21
(before the Investec Limited 37 for 100 share consolidation)
Revised base cost per Investec Limited ordinary share received ______
(after the Investec Limited 37 for 100 share consolidation) 322.19
Base cost per Investec PLC ordinary share received 139.91
Investec Limited dividend portion of the distribution 44.26
_____________________________
Investec Limited members and Inhold members are advised to seek appropriate
professional advice in applying the above information to their particular
circumstances.
Sandton
16 April 2003
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Merchant Bank Lead sponsor in South Africa Joint sponsor in South Africa
Investec Corporate Ernst & Young Sponsors (Pty) Investec Securities Limited
Finance Limited (Registration number
Investec Bank (Registration number 2000/ 1972/008905/06)
Limited 031843/07)
(Registration in association with Jowell
number Glyn & Marais Inc.
1969/004763/06)
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