Non-redeemable, non-participating preference shares at cost
441
441
4 540 041 preference shares were issued during the 2007 financial year and are listed on the
JSE under specialist securities – preference shares sector.
These shares are entitled to a preference dividend being 82,5% of the prime interest rate. The
company is obligated to pay any arrear dividends within five years from the proceeds raised by
issuing new ordinary shares within six months prior to such payment. Because of the cumulative
nature of these preference shares they are classified as debt with no repayment terms.
The coupon is payable semi-annually on 1 April and 1 October and annually this amounts to
R32 million (2012: R32 million), which is included as part of finance cost in profit or loss.
