Stenprop: Election to receive cash or scrip dividend

19th December 2019 | Stenprop Limited

On Friday, 22 November 2019 it was announced that the board of directors of the Company (the “board”) had approved and declared an interim dividend of 3.375 pence per share (the “dividend”) in respect of the six months ended 30 September 2019. It was further announced that the board intended to offer shareholders the option to receive in respect of all or a part of their Stenprop shareholding either a scrip dividend by way of an issue of new Stenprop shares (of the same class as existing shares) credited as fully paid up (“scrip dividend”), or a cash dividend (“cash dividend”). The cash dividend will be paid to shareholders unless shareholders elect to receive the scrip dividend.

A circular in respect of the election being offered to Stenprop shareholders to receive either the cash dividend or the scrip dividend, together with an election form (the “circular”), will be posted to shareholders today. All the terms defined in the circular shall bear the same meaning in this announcement and any subsequent announcements relating to the dividend.

Should a shareholder validly elect to receive the scrip dividend in lieu of cash for all or part of his Stenprop shareholding, such shareholder will become entitled to a number of new Stenprop shares which value will be as near as possible to the cash dividend such shareholder would have otherwise received in respect of the elected shares. A shareholder’s entitlement to new Stenprop shares will be calculated by multiplying the number of elected shares held by that shareholder at the record date by the dividend of 3.375 pence per share (converted to Rand at the Sterling exchange rate for Stenprop shares on the SA share register) and dividing it by the scrip dividend reference price. The scrip dividend reference price will be the average closing price of Stenprop shares traded on the London Stock Exchange (“LSE”) over a period of five days less the amount of the cash dividend and will be announced on Tuesday, 14 January 2020.

Given the Company’s share price, which is at a discount relative to net asset value, the board intends to match the scrip dividend through the buyback of shares to mitigate the dilutive effect that would otherwise occur through the issuance of new Stenprop shares.

Stenprop converted to a UK REIT on 1 May 2018. The Company may distribute dividends to shareholders either in the form of a property income distribution (“PID”) or as an ordinary dividend (“non-PID”). Both the cash dividend and new Stenprop shares received in lieu of a cash dividend under the scrip dividend may be paid as a PID, a non-PID or a mixture of the two. The Company will indicate whether the dividend will be paid as a PID, a non-PID or a mixture of the two along with the scrip reference price on Tuesday, 14 January 2020. The Sterling to Rand conversion rate will be determined on Monday, 13 January 2020 and announced on SENS on Tuesday, 14 January 2020.

The rationale for the scrip dividend is to afford shareholders the opportunity to increase their shareholding in Stenprop.

The cash dividend is a foreign dividend (to be paid out of the United Kingdom) and will be paid out of the Company’s profits. The new Stenprop shares to be issued pursuant to the scrip dividend will also be funded from the Company’s profits.

As at the date of this announcement, the Company had 298,775,175 ordinary shares in issue with a par value of EUR0.000001258 each.

Electronic copies of the circular may be obtained from the company secretary by sending a request to Sarah.Bellilchi@stenprop.com. Hard copies of the circular may be obtained during business hours from the registered address of the Company from Thursday, 19 December 2019 to Friday, 24 January 2020. The circular will also be available on the website of the Company (www.stenprop.com) from Thursday, 19 December 2019.

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