PGFP PSG
 
PSG/PGFP - PSG Group Limited/PSG Financial Services Limited - Update
 
Announcement regarding the introduction of Dividends Tax
 
PSG Group Limited
 
Incorporated in the Republic of South Africa
 
Registration number: 1970/008484/06
 
JSE share code: PSG
 
ISIN number: ZAE000013017
 
PSG Financial Services Limited
 
(Incorporated in the Republic of South Africa)
 
Registration number: 1919/000478/06
 
JSE share code: PGFP
 
ISIN number: ZAE000096079
 
("PSG" or "the Company")
 
UPDATE ANNOUNCEMENT REGARDING THE INTRODUCTION OF DIVIDENDS TAX
 
Shareholders in PSG's cumulative, non-redeemable, non-participating preference
 
shares ("PSG Preference Shares") are referred to the SENS announcement dated 25
 
January 2012. In accordance with the PSG Preference Share Terms, the Company
 
will adjust the Dividend Rate in the event that an amendment to the Income Tax
 
Act results in both a cost saving to the Company and the Preference Dividends
 
being taxable in the hands of the PSG Preference Shareholders. Such adjustment
 
will, however, be limited to the extent that the Company incurs less cost in
 
servicing the PSG Preference Shares.
 
Shareholders are hereby advised that the PSG board of directors have resolved
 
that the PSG Preference Shares Dividend Rate be increased from 75% to 83.33% of
 
the prime interest rate with effect from 1 April 2012, being an increase of
 
11.11%, and which was calculated in terms of the formula as per the announcement
 
dated 25 January 2012 when the widely anticipated Dividends Tax rate was 10%.
 
PSG believes that the increase in the PSG Preference Shares Dividend Rate is
 
fair, albeit that the aforementioned increase is marginally more than the 10%
 
STC saving obtained by the Company.
 
Shareholders should note that in terms of the relevant PSG Preference Share
 
Terms, should there in future be any changes to Tax Legislation which result in
 
additional tax being levied on dividends received by the PSG Preference
 
Shareholders, there will be no obligation on the Company to adjust the PSG
 
Preference Shares Dividend Rate, unless such changes to Tax Legislation
 
simultaneously result in a cost saving to the Company in servicing such shares.
 
Stellenbosch
 
4 April 2012
 
Sponsor
 
PSG Capital
 
Date: 04/04/2012 17:06:38 Produced by the JSE SENS Department.
 
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