Santam Limited, a leading name in South Africa’s insurance industry, has declared a special cash dividend for its shareholders following the successful fulfillment of conditions precedent to the disposal of the company’s 10% interest in SAN JV RF Proprietary Limited (“SAN JV”). This announcement comes after months of anticipation and strategic maneuvers within the insurance sector.
In a statement released today, Santam confirmed that all conditions precedent to the transaction have been met, making the disposal of its 10% stake in SAN JV to Allianz Europe BV a reality. The legal effective date of the transaction was September 4, 2023, with Santam receiving EUR 126.4 million, which is approximately R2.6 billion in disposal proceeds.
One of the most anticipated aspects of this development is the declaration of a special cash dividend for Santam’s shareholders. This move underscores the company’s commitment to rewarding its investors for their continued support.
The Board of Directors at Santam meticulously assessed the company’s financial position post-transaction and decided to distribute a significant portion of the gross proceeds to shareholders. This distribution will take the form of a special cash dividend, subject to approval by the Financial Surveillance Department of the South African Reserve Bank.
Table 1: Special Cash Dividend Details
| Special Cash Dividend (gross) | 1,780 cents per share |
|---|---|
| Net Special Cash Dividend (after withholding tax) | 1,424 cents per share |
| Dividend Withholding Tax Rate | 20% |
Shareholders can expect to receive the special cash dividend based on their ordinary shareholding in Santam as of the Record Date, which is set for October 6, 2023. It’s important to note that a dividend withholding tax of 20% will be applicable to all shareholders who are not exempt.
Key Dates to Remember
Santam has also provided key dates for shareholders to mark on their calendars:
During the period from October 4, 2023, to October 6, 2023, both days inclusive, share certificates may not be dematerialized or rematerialized.
Santam advises shareholders to seek their own advice on the tax consequences associated with the Special Cash Dividend. Ensuring that their records are up to date is crucial to ensure the correct withholding tax is applied to their Special Cash Dividend.
Santam Limited’s declaration of a special cash dividend is a significant moment for the company and its shareholders. The successful disposal of its 10% stake in SAN JV, along with the subsequent distribution of R2 billion of the gross proceeds, highlights Santam’s commitment to rewarding its loyal investors. As South Africa’s insurance landscape continues to evolve, this move positions Santam to further strengthen its strategic focus and provide value to its shareholders in the years ahead. Shareholders are encouraged to stay informed and take note of the important dates associated with the Special Cash Dividend to ensure a seamless process.
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