Distribution and dividend policy

Massmart’s previous dividend policy was to declare and pay an interim and final cash dividend representing a 1.70 times dividend cover. In light of the new Dividend Tax introduced with effect from 1 April 2012 (“Dividend Tax”), the Group’s dividend cover has been adjusted to reflect the benefit to the Company of no longer paying the Secondary Tax on Companies (“STC”) on the net dividend.

Consequently, Massmart’s new dividend policy is to declare and pay an interim and final cash dividend representing a 1.55 times dividend cover unless circumstances dictate otherwise. There were no STC credits available for use as part of this declaration. The number of shares in issue at the date of this declaration is 216,910,195.

Notice is hereby given that a gross final cash dividend of 275.00 cents per share in respect of the period ended 23 December 2012, has been declared. The dividend has been declared out of income reserves and will be subject to the Dividend Tax rate of 15% which will result in a net dividend of 233.75 cents per share to those shareholders who are not exempt from paying dividend tax. Massmart’s tax reference number is 9900/196/71/9.

The salient dates relating to the payment of the dividend are as follows:

Last day to trade cum dividend on the JSE Thursday, 14 March 2013
First trading day ex dividend on the JSE Friday, 15 March 2013
Record date Friday, 22 March 2013
Payment date Monday, 25 March 2013

Share certificates may not be dematerialised or rematerialised between Friday, 15 March 2013 and Friday, 22 March 2013, both days inclusive.

Massmart shareholders who hold Massmart ordinary shares in certificated form (“certificated shareholders”) should note that dividends will be paid by cheque and by means of an electronic funds transfer (“EFT”) method. Where the dividend payable to a particular certificated shareholder is less than R100, the dividend will be paid by EFT only to such certificated shareholder.

Certificated shareholders who do not have access to any EFT facilities are advised to contact the Company’s transfer secretaries, Computershare Investor Services at Ground Floor, 70 Marshall Street, Johannesburg, 2001, PO Box 61051, Marshalltown 2107, (011) 370 5000, 086 110 09818, in order to make the necessary arrangements to take delivery of the proceeds of their dividend.

Massmart shareholders who hold Massmart ordinary shares in dematerialised form will have their accounts held at their CSDP or broker credited electronically with the proceeds of their dividend.

On behalf of the Board

Grant Pattison
Chief Executive Officer

27 February 2013

Ilan Zwarenstein
Financial Director