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JSE
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FTSE/JSE Africa Index Series - The proposed treatment of the Standard Bank
Corporate action in the FTSE/JSE indices
THE PROPOSED TREATMENT OF THE STANDARD BANK CORPORATE ACTION IN THE FTSE/JSE
INDICES
11 December 2007
Further to the announcement of the scheme of arrangement between Standard Bank
Group and Industrial and Commercial Bank of China Limited (ICBC), FTSE/JSE would
like to clarify that the compulsory acquisition of Standard Bank ordinary shares
by ICBC from Standard Bank shareholders at a fixed price will be treated as a
mandatory offer. This treatment was initially published in an Index Change
Advice (ICA) on 18 April 2006. Please see Appendix A below for your perusal.
Please note that the scheme of arrangement will also include a specific issue of
shares for cash to ICBC. When details and dates are confirmed and approved a
further ICA may be published if necessary.
For FTSE / JSE index enquiries or further information about FTSE / JSE please
contact:
Client Services in UK:
Tel: +44 (0) 20 7866 1810
Client Services in US:
Tel: +1 888 747 FTSE (3873) or +1 212 641 6165
Client Services in Asia Pacific:
Tel: +852 2230 5803 or +65 6223 3738 or +81 3 3581 2811
JSE Limited:
Tel: (27 11) 520 7702 or +520 7777
Appendix A
CHANGE IN THE TREATMENT OF MANDATORY OFFERS IN THE FTSE/JSE INDICES
18 April 2006
A decision has been reached after considering feedback received from the
investment community and extensive deliberations with the FTSE/JSE Advisory
Committee and FTSE.
FTSE/JSE will adjust for mandatory offers according to the formula below:
* the expected opening share price on the ex date will be
Expected Open = ( Closing Price - (Offer percentage * Offer Price) )/(1 - Offer
Percentage)
* the price adjustment will be Expected Open - Closing price
Below is an example of how this will be implemented in the indices.
Let us say 32% of a company`s shares are bought back at a fixed price of 8 200
cents, and the market closes on 8 700 cents at close before the ex date. The
Expected Open, also referred to as the Adjusted Close, as per the above formula
is thus 8 935 cents. The values are illustrated in the table below:
Shares Price (In Cents) Value
Portfolio 100 8 700 8,700
at Close
Bought back 32 8 200 2,624
Remaining shares 68 8 935 6,076
This will result in an adjustment of 235 cents (= 8700 - 8935).
The following points are worth noting :
* This treatment will only apply to mandatory offers as per the definition
above, conditional offers will not qualify.
* The normal free float and shares in issue updates still apply as per the
current ground rules.
* This treatment will apply with immediate effect, however the previous
mandatory offers will not be adjusted for and hence no history will be
calculated.
Or, email your enquiries to info@ftse.com, indices@jse.co.za or visit our
website at www.ftse.com or www.ftsejse.co.za
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Date: 12/12/2007 08:25:01 Produced by the JSE SENS Department.
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