Buying and selling your shares March 2011

Transcription

1 Buying and selling your shares March 2011

2 Contents 1. Objectives of presentation 2. Number of shares to buy or sell 3. Documentation requirements 4. Available methods to buy or sell shares 5. Selling prices 6. Costs to buy and sell shares 7. Tax 8. Summary of trading process 9. What to look out for 10. Where to get help 11. Launch date

3 Objectives of presentation To provide basics on the trading process Show what the minimum requirements are Understand what costs are involved Highlight matters to look out for Where to get assistance

4 Number of shares to buy or sell Shareholders are entitled to sell up to one-third of shareholding However, if hold less than shares can sell up to 500 in 2011 and the balance in 2012 Shares bought on trading system in 2011 onwards can all be sold at any time but only to Black persons No limit to how many shares can be bought Any Black person who is a South African citizen or permanent resident can purchase shares

5 Documentation requirements Before trade can take place, the following required Certified copy of ID Proof of residence Proof of bank account Also, need to sign the Terms & Conditions to use the trading system Buyers to first deposit sufficient cash to cover intended purchases EFT and cash only No cheques allowed Seller to sign and submit CM42 (Transfer of shares)

6 Available methods to buy or sell shares Participants need to register to use the system Internet trading Performed anywhere with internet access Can place sale and buy orders over the internet Use your unique username and password Telephone trading Participants call and instruct call centre agents to buy or sell Use your unique username and password Calls are recorded

7 Selling prices Shareholder chooses price at which to sell Sell at a specific price Shares may not be sold if your price is too high No individual person determines the share price Determined by each buyer and seller

8 Costs to buy and sell shares Admin fee 1.5% of the value Minimum of R150 (plus VAT) Charged to both buyers and sellers Used to cover administration and costs of system Securities Transfer Tax Payable by buyer only 0.25% of value of trade Amount collected on behalf of SARS

9 Tax Income Tax is payable on the gain made For specific advice a tax adviser should be consulted Shareholders will receive statements in May each year setting out gains made in previous tax year Statements to be used for tax return

10 Summary of trading process 1. Shareholder registers on system 2. Buyer deposits cash into company bank account 3. Seller sends in CM42 4. Log into internet system OR phone call centre agents Decide on price to sell or buy Place bid (buy) or offer (sell) 5. Buyers and sellers matched 6. Buyer obtains ownership of shares and receives confirmation (original share certificates kept by Link Market Services) 7. Seller receives cash, after deducting costs Paid by EFT into seller s bank account only. Based on bank details provided to Link Market Services.

11 What to look out for Keep your password safe and secret This will be used to buy and sell Log out when finished using the internet When trading online Ensure you read all instructions carefully After buy and sell orders are matched they cannot be reversed Ensure all contact details (telephone numbers, postal address, bank details, etc.) are updated at all times with Link Market Services

12 Where to get help Trading call centre Will answer queries on operation of system Cannot give investment advice and will not suggest a price to sell or buy Phone number to be given before launch Internet Trading process document Frequently Asked Questions

13 Launch date To be launched in April 2011 Shareholders to be advised of exact date SMS Letter

14 Thank you Disclaimer African Bank Investments Limited, Hlumisa Investment Holdings and Eyomhlaba Investment Holdings Limited are not investment or legal advisors. If you require advice on your investment in Hlumisa Investment Holdings Limited Eyomhlaba Investment Holdings Limited, you should consult an investment and/or legal advisor. This presentation does not replace the Hlumisa and Eyomhlaba prospectuses and Hlumisa and Eyomhlaba Articles of Association. If anything in this presentation is different to what is stated in the Hlumisa and Eyomhlaba prospectuses and/or Articles of Association, the Hlumisa and Eyomhlaba prospectus and Articles of Association take precedence. Furthermore, African Bank Investments Limited, Hlumisa Investment Holdings Limited and Eyomhlaba Investment Holdings Limited will not be responsible in any way if anything has been omitted from this presentation or if anything stated in the presentation is incorrect.