| |
|
2009
R’million |
|
Restated
2008
R’million |
| 15. |
PREFERENCE SHARE CAPITAL |
|
|
|
| |
Authorised |
|
|
|
| |
17 600 000 (2008: 17 600 000) cumulative, variable rate A preference shares of 13,90607 cents each |
2,4 |
|
2,4 |
| |
20 000 000 (2008: 20 000 000) non-redeemable, non-participating variable rate B preference shares of 13,90607 cents each |
2,8 |
|
2,8 |
| |
Issued |
|
|
|
| |
17 600 000 (2008: 17 600 000) cumulative, variable rate A preference shares of 13,90607 cents each, issued at R21,41 during June 2005 |
2,4 |
|
2,4 |
| |
Share premium |
374,4 |
|
374,4 |
| |
|
376,8 |
|
376,8 |
| |
Rights attached to the A preference shares |
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|
|
| |
Dividend rights
Preference share dividends are calculated at prime overdraft rate of interest as charged by
First National Bank, a division of FirstRand Bank Ltd from time-to-time multiplied by one minus
the corporate tax rate for the relevant dividend period. Dividends are payable on 10 June of
each year. |
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|
| |
The preference share dividend rate was 7,9% at year-end (2008: 10,8%). |
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| |
Voting rights
Each Aspen preference share has one vote and accordingly ranks pari passu in regard to votes with the issued Aspen ordinary shares. |
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| |
Redemption/conversion rights
Preference shareholders have the right to require the redemption or conversion
of the Aspen preference shares into Aspen ordinary shares on a one-for-one basis on the seventh anniversary after the issue of the Aspen preference shares, being June 2012. Redemption will take place at R21,41. |
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| |
The conditions or rights of the preference shares are available for inspection at the Company’s registered office. |
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Accounting
Refer to the accounting policy. For accounting purposes the preference shares have been split into an equity and a liability component: |
|
|
|
| |
Preference shares – equity component |
162,0 |
|
162,0 |
| |
Deferred tax effect |
(8,7) |
|
(8,7) |
| |
Net equity component |
153,3 |
|
153,3 |
| |
Preference shares – liability component |
392,2 |
|
402,1 |
| |
Amount expensed in 2005 |
(183,2) |
|
(183,2) |
| |
Cumulative notional interest on liability component |
14,5 |
|
4,6 |
| |
Opening balance |
4,6 |
|
3,2 |
| |
For the year |
9,9 |
|
1,4 |
 |
|
|
|
|
| |
|
376,8 |
|
376,8 |
| |
The fair value of the liability component of the preference shares is R392,5 million
(2008: R402,8 million). The liability component is exposed to fair value interest rate risk.
The effective interest rate of the liability component was 11,0% (2008: 15,5%). |
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