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JSE
JSE
FTSE/JSE Africa Index Series - 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
at Close
100
8 700
8,700
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.
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
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: 19/04/2006 08:26:20 AM Produced by the JSE SENS Department
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