| Mon 8 Sep 2008, 11:28 | | STXRAF - Satrix Rafi 40 - Initial offer for Satrix Rafi 40 securities |
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JSE
STX2
STXRAF - Satrix Rafi 40 - Initial offer for Satrix Rafi 40 securities
announcement
SATRIX RAFI 40
Share code: STXRAF & ISIN: ZAE000126033
A portfolio in the Satrix Collective Investment Scheme ("Satrix") registered as
such in terms of the Collective Investment Schemes Control Act, 45 of 2002,
managed by Satrix Managers (Proprietary) Limited ("Satrix Managers")
INITIAL OFFER FOR SATRIX RAFI 40 SECURITIES REFERENCING THE TOTAL RETURN VERSION
OF THE FTSE/JSE RAFI 40 INDEX ("RAFI 40 INDEX"), TO BE LISTED ON THE MAIN BOARD
OF THE JSE LIMITED ("JSE") IN THE "EXCHANGE TRADED FUNDS" SECTOR ("SATRIX RAFI
40 SECURITIES")
This announcement is issued in compliance with the Listings Requirements of the
JSE for information purposes only. The information set out below has been
extracted from an offering circular and pre-listing statement (as issued on 15
March 2006) (the "circular"), together with the Fourth Supplement thereto (the
"supplement") issued on 5 September 2008, which is available as set out below.
1. INTRODUCTION SATRIX RAFI 40 AND THE OFFER
Satrix is a collective investment scheme in securities, currently
comprising the Satrix 40, Satrix INDI, Satrix FINI, Satrix RESI, Satrix
SWIX Top 40 and Satrix Dividend Plus portfolios.
The new Satrix RAFI 40 will track or replicate the FTSE/JSE RAFI 40 Total
Return Index.
The RAFI 40 Index comprises 40 securities listed on the JSE Limited,
selected from the FTSE/JSE All Share Index ("All Share Index"). The
selection of the constituent securities in the RAFI 40 Index is based on
four factors, namely cash flows, book values, sales and dividends of the
constituent companies in the All Share Index over the preceding five years.
The four factors are equally weighted and the combined factor weights are
used to calculate what is know as the RAFI Fundamental Value ("RFV"). The
top 40 companies in the All Share Index, calculated by the RFV methodology,
are the RAFI 40 Index constituents. Index constituent weightings are capped
at 10% of the RAFI 40 Index. The RAFI 40 Index is a so called "total return
index". What this means is that in terms of the RAFI 40 Index calculation
methodology, it is assumed that all distributions made by constituent
companies are immediately reinvested through the purchase of constituent
securities.
Accordingly, although distributions will be declared in respect of Satrix
RAFI 40 from time to time, such distributions will not be paid to investors
in cash, but will immediately be reinvested on their behalf in order to
ensure as close replication of the RAFI 40 Index as is possible. For
further details in this regard, investors are referred to the supplement.
Investors will be entitled to subscribe for SATRIX RAFI 40 Securities in
terms of the initial offer:
- in cash, in Rands, the proceeds from the issue of every 1 million
Satrix RAFI 40 Securities being utilised to acquire one basket of the
securities comprising the RAFI 40 Index ("constituent shares"); or
- in specie, by the delivery of one or more whole baskets of constituent
shares ("baskets of constituent shares") entitling the investor to 1
million Satrix RAFI 40 Securities per basket of constituent shares
delivered.
Satrix RAFI 40 Securities will be issued in dematerialised form only on the
terms and subject to the conditions more fully described in the circular as
read with the supplement, the value of each of which will approximately
equal 1/1000th of the RAFI 40 Index level on the last day of the ramp-up
period (see below).
Following the listing, Satrix RAFI 40 Securities holders may either trade
their securities on the JSE, redeem them for cash or, in respect of every 1
million Satrix RAFI 40 Securities redeemed, redeem them for one basket of
constituent shares.
Although it is the stated policy of Satrix RAFI 40 to track the RAFI 40
Index as closely as is possible, investors should be aware that perfect
tracking of the RAFI 40 Index will not be possible in all circumstances and
at all times and accordingly no undertaking, warranty or guarantee is given
or is to be implied as to the accuracy with which the RAFI 40 Index will be
tracked by Satrix RAFI 40 from time to time or at any time.
2. SALIENT DATES AND TIMES AND FURTHER ANNOUNCEMENT
2008
Opening date of the initial offer at Monday, 8 September
09:00 on:
Closing date of the initial offer at Wednesday, 8 October
12:00 on+:
Ramp up period in respect of cash Friday, 10 October
subscriptions commences:
LAs issued:* Friday, 10 October
Ramp up period in respect of cash Monday, 13 October
subscriptions ends no later than:
Listing date: Thursday, 16 October
Publication of announcement on SENS as Thursday, 16 October
to the results of the initial offer:
* Applicants should contact their broker or CSDP to ascertain the timing for
submission of applications as this will vary dependent on the broker or
CSDP in question. Brokers and CSDPs may set deadlines for submission two
or more days prior to the stated date, after which time no new applications
will be accepted.
* One letter of allotment will be issued for every Rand subscription against
a subscriber`s CSDP or broker account being debited with the Rand amount.
Once the baskets of constituent shares have been acquired, Strate will
convert the LAs to Satrix RAFI 40 Securities in the CSDP accounts in
accordance with the conversion ratios to be published on SENS.
A further announcement containing the results of the initial offer including the
issue price will be published on SENS on Thursday, 16 October 2008.
3. NOTICE
Satrix Managers has been granted permission to use the name of and to track
the RAFI 40 Index.
Satrix RAFI 40 Securities are not eligible for sale in the United States or
in any other jurisdiction in which trading in the securities would be
illegal. Satrix RAFI 40 Securities have not been, and will not be,
registered under the U.S. Securities Act of 1933, as amended, and trading
in the securities has not been approved by the U.S. Commodity Futures
Trading Commission under the U.S. Commodity Exchange Act. Satrix RAFI 40
Securities may not be offered, sold or delivered within the United States
or to U.S. persons, nor may any U.S. person at any time trade or maintain a
position in the securities.
Satrix RAFI 40 Securities are not in any way sponsored, endorsed, sold or
promoted by FTSE International Limited ("FTSE"), the London Stock Exchange
Plc (the "Exchange"), The Financial Times Limited ("FT") or the JSE Limited
("JSE") (collectively the "Licensor Parties") and none of the Licensor
Parties make any warranty or representation whatsoever, expressly or
implied, either as to the results to be obtained from the use of the RAFI
40 Index and/or the figure at which the RAFI 40 Index stands at any
particular time on any particular day or otherwise. The RAFI 40 Index is
compiled and calculated by FTSE in conjunction with the JSE. None of the
Licensor Parties shall be liable (whether in negligence or otherwise) to
any person for any error in the RAFI 40 Index and neither shall any of them
be under any obligation to advise any person of any error therein.
"FTSE" is a trade mark of the Exchange and FT, and are used by the JSE
under licence. "JSE" is the trademark of the JSE and is used by FTSE under
licence.
4. DIRECTORS, TRUSTEE AND REGISTERED OFFICE
The directors of Satrix Managers, all of whom are non-executive, are:
Director : Roger Koep
Address : c/o Deutsche Securities (Proprietary)
Limited, 3 Exchange Square, 87 Maude
Street, Sandton, 2196
Director : Pierre Rodrigues
Address : c/o Sanlam Investment Management
(Proprietary) Limited ("SIM"), 55 Willie van
Schoor Avenue, Belville, Western Cape, 7530
Director : Francois Kellerman
Address : c/o SIM, 55 Willie van Schoor Avenue,
Belville, Western Cape, 7530
Director : Niall Smith
Address : c/o Deutsche Securities (Proprietary)
Limited, 3 Exchange Square, 87 Maude
Street, Sandton, 2196
The trustee of Satrix, Absa Bank Limited, is located at 6th Floor, Absa
Towers North, 6E1, Johannesburg.
The registered office is located at Three Exchange Square, 87 Maude Street,
Sandown, Sandton, 2146.
5. COPIES OF THE SUPPLEMENT AND THE CIRCULAR
Copies of the supplement, in English, may be obtained during normal
business hours from the registered office as detailed above, from Monday, 8
September 2008. A copy of the circular and the supplement will be available
on the Satrix Managers` website (www.satrix.co.za) during the same period.
6. SUBSCRIPTION CONDITIONS APPLICABLE TO THE INITIAL OFFER
The initial offer is subject to the conditions detailed in the circular as
read with the supplement and as summarised below:
- You cannot withdraw an application once submitted. It will be
irrevocable.
- All subscriptions for new Satrix RAFI 40 Securities will be treated as
primary market acquisitions. No application forms are required.
- All subscribers for new Satrix RAFI 40 Securities must have a valid
account with a broking member of the JSE.
- Subscribers that do not have an account with a JSE member can open an
account with any broker on the JSE. A list of brokers is available on
the JSE website at www.jse.co.za.
- Subscribers can also contact Standard Financial Markets (Proprietary)
Limited, which has been appointed as the participating broker to
assist first time retail clients in opening an account. Further
information can be obtained from the participating brokers` website
www.standardbank.co.za or on 086 012 1161.
- If a prospective investor is in any way unclear as to the correct
procedure to be followed, or the terms and conditions applicable to
subscriptions for Satrix RAFI 40 Securities under the initial offer,
the investor is advised to contact his professional advisors,
alternatively to contact Satrix Managers directly on (011) 7840641.
- A controlled client should liaise with his broker, which will
subscribe via its nominated CSDP.
- A non-controlled client should liaise with its nominated CSDP, which
will in turn liaise with Computershare Investor Services 2004
(Proprietary) Limited.
Johannesburg
8 September 2008
Manager
Satrix Managers (Proprietary) Limited
Corporate advisor, legal advisor and sponsor
Java Capital (Proprietary) Limited
Legal advisor
Edward Nathan Sonnenbergs Incorporated
Trustee
Absa Bank Limited
Date: 08/09/2008 11:28:01 Produced by the JSE SENS Department.
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implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
