I thought I was done for the year but I can't but point this out.
As per the cash allocation announcement issued today (copied in below). Fractional shareholders will be paid 24.52cents per share. This translates to 0.6cents per share if you look at pre consolidation share holdings. So by allowing this the JSE and the AFDAWN board have openly robbed their minority shareholders of another 40% or 0.4cents per share, pre consolidation.
Way to go guys, nice Christmas present....
Still waiting for the reason for the consolidation? and I mean the one that will really add value and make sense....
CASH ALLOCATION PAYMENTS FOR FRACTIONS OF SHARES
Shareholders of Afdawn are referred to the circular issued by the Company
on 16 September 2016 (“Circular”) relating to, inter alia, the proposed
consolidation of the Company’s ordinary share capital on a 40 to 1 basis
from an authorised share capital of 5 000 000 000 ordinary shares of
1 cent each to 125 000 000 ordinary shares of 40 cents each with effect
from Wednesday, 30 November 2016 (“Consolidation”) and to the subsequent
finalisation announcement released on SENS on 17 November 2016 in respect
of the Consolidation.
As set out in the Circular, fractions of consolidated shares will not
be issued. In the case of fractional entitlements, all allocations of
shares will be rounded down to the nearest whole number resulting in
allocations of whole shares together with a cash payment for the fraction
to be paid out to Afdawn shareholders.
In accordance with the Listings Requirements of the JSE Limited (“JSE”),
the cash value of allocation payments for fractions of shares has been
calculated with reference to the volume weighted average price of an
ordinary Afdawn share traded on the JSE on Wednesday, 30 November 2016
less a 10% discount.
Shareholders are accordingly advised that the basis applicable in
determining the gross cash payment for the fractional entitlement is
32.05732 cents, less a 10% discount resulting in a net cash payment of
This fractional entitlement payment will be subject to 15% dividend
withholding tax, resulting in a net cash payment of 24.52385 cents.