INVS - Investec - Clarification of the terms and c
JSE
INVS
INVS - Investec - Clarification of the terms and conditions of the Investec Hot
EDS and EDS Expiry and Roll-Over
INVESTEC BANK LIMITED
CLARIFICATION OF THE TERMS AND CONDITIONS OF THE INVESTEC HOT ENHANCED DIVIDEND
SECURITIES ("HOT EDS") AND ENHANCED DIVIDEND SECURITIES ("EDS") EXPIRY AND ROLL-
OVER
Investec Bank Limited would like to clarify the expiry and roll-over of Enhanced
Dividend Securities ("EDS") and Hot Enhanced Dividend Securities ("Hot EDS").
Should warrant holders choose not to exercise or expire their warrants then the
Investec Equity Derivatives desk will automatically roll the warrant into the
"New" series of Hot EDS in which case Investec will make arrangement to buy-back
the "Existing" Hot EDS and sell the "New" Hot EDS at no bid-offer spread margin.
This will be done on a one-for-one basis, a cash distribution of the difference
between the intrinsic value inherent to the "Existing" Hot EDS and the less
expensive "New" Hot EDS will accrue to the client.
All warrants will be rolled at the close of business on the day of expiry. The
value of the expiring warrant is intrinsic (Spot-Strike). This will be used to
calculate the roll. For example: If the expiring warrant has Closing intrinsic
value of R100, the far-dated warrant has value R90 then the holder will receive
1 far-dated warrant + R10 cash. This will be done for all EDS and Hot EDS
warrants that are rolled. The new warrant position will be effective on t+1 of
expiry and the cash will be paid on t+5 of expiry.
Hot Enhanced Dividend Securities ("HOT EDS") and Enhanced Dividend Securities
("EDS") are exercisable only in accordance with the terms and conditions as set
out in the relevant offering circular.
Copies of the offering circular may be obtained from:
Investec Bank Limited
100 Grayston Drive
Sandown
Sandton
2196
For further information contact:
Investec Warrants
Tel.: 0860 103 343
E-mail: warrants@investec.co.za
Internet: www.investecwarrants.com
Sponsor
Investec Securities Limited
Member of the JSE
Registration number. 1972/008905/06)
Date: 07/05/2007 17:32:13 Produced by the JSE SENS Department.
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