Hong Kong Exchanges and Clearing Limited (HKEx) has announced the arrangements for the adjustment to the contract terms of all open futures and options contracts on Swire Pacific ‘A’ shares (Swire A) to account for the following conditional dividend:
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Stock (Stock Code)
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Swire Pacific Limited ‘A’ (Swire A) (19)
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Corporate Action
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Conditional special interim dividend (Conditional Dividend) in specie of 7 shares of Swire Properties Limited (SPL) for every 10 shares of Swire A (Entitlement)
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Entitlement Ratio
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0.7
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Ex-date
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4 January 2012
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Listing Day of SPL
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18 January 2012
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For details of the conditional dividend, please refer to the announcement by Swire A on 27 October and 21 December 2011:
http://www.hkexnews.hk/listedco/listconews/sehk/2011/1027/LTN20111027549.pdf
http://www.hkexnews.hk/listedco/listconews/sehk/2011/1221/LTN20111221026.pdf
http://www.hkexnews.hk/listedco/listconews/sehk/2011/1221/LTN20111221016.pdf
Highlights of the arrangements for Swire A futures and options contracts are set forth below. Investors should consult their brokers for further details, or if they have any questions regarding the arrangements.
Swire A Futures
Trading Arrangements
Outstanding positions of Swire A stock futures contracts (under trading symbols SWA and SWB1) which exist after the market close on the business day immediately before the ex-date will be transferred to temporary trading symbols SWC and SWD respectively. Since the value of the Entitlement will not be available until the value of SPL is determined, trading of outstanding positions under temporary trading symbols SWC and SWD will be suspended from the ex-date to and including the listing day of SPL. Trading of stock futures contracts under trading symbol SWB will be suspended from the ex-date.
On the ex-date, new contract months of Swire A stock futures (500 Swire A shares per contract on an ex-entitlement basis) will be introduced for trading under the standard trading symbol SWA.
1 SWB stock futures contracts are the adjusted contracts generated from capital adjustment made on 14 September 2011 due to proposed special interim dividend for the year ending 31 December 2011 (adjustment details are in the circular on the HKEx website).
When the value of the Entitlement has been determined, capital adjustment will be made to the outstanding positions under trading symbols SWC and SWD. The adjusted positions will be transferred to trading symbols SWE and SWF respectively. Positions under trading symbols SWE and SWF will commence trading starting from the business day immediately after the listing day of SPL.
Adjustment Procedures
Adjustment will be made after the close of the listing day of SPL prior to the trading commencement date of positions under trading symbols SWE and SWF. The adjustment procedures are as follows:
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Adjustment Ratio (AR)
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(Underlying stock closing price before the ex-date minus Entitlement) / (Underlying stock closing price before the ex-date)
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Rounded to the nearest 4 decimal places
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Adjusted Contracted price (ACP)
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Contracted price of outstanding stock futures contract months × AR
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Rounded to the nearest 2 decimal places
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Adjusted Contract Multiplier (ACM)
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(Contracted price of outstanding stock futures contract months x 500 shares) / ACP
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Rounded to the nearest 4 decimal places
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Remark: Entitlement is SPL’s value times the Entitlement Ratio for each Swire A share
Contract Details
Details of the adjusted and standard contracts available for trading from the ex-date onwards are shown below:
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Standard
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SWA
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Swire A (ex-entitlement)
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500
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Ex-date
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From the ex-date onwards
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Yes
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Adjusted
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SWB
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Swire A & Entitlement
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515.3431*
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14 Sep 2011
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Nil
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No
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Adjusted
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SWC
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Swire A & Entitlement
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500
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Ex-date
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Nil
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No
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Adjusted
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SWD
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Swire A & Entitlement
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515.3431*
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Ex-date
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Nil
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No
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Adjusted
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SWE
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Swire A (ex- Entitlement)
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ACM
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The 1st Business Day after the Listing Day of SPL
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From introduction date to 27 September 2012
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No
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Adjusted
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SWF
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Swire A (ex- Entitlement)
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ACM
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The 1st Business Day after the Listing Day of SPL
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From introduction date to 29 March 2012
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No
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*Adjusted Contract Multiplier of SWB stock futures March 2012 contract on introduction date
Swire A Options
Trading Arrangements
Outstanding positions of Swire A stock options contracts (under trading symbols SWA and SWB2) which exist after the market close on the business day immediately before the ex-date will be transferred to temporary trading symbols SWC and SWD respectively. Since the value of the Entitlement will not be available until the value of SPL is determined, trading of outstanding positions under temporary trading symbols SWC and SWD will be suspended from the ex-date to and including the listing day of SPL. Trading of Swire A stock options contracts under trading symbol SWB will be suspended from the ex-date.
On the ex-date, new series of Swire A stock options (deliverable is 500 Swire A shares per contract on an ex-entitlement basis) will be introduced for trading under the standard trading symbol SWA.
When the value of the Entitlement has been determined, capital adjustment will be made to outstanding positions under trading symbols SWC and SWD. The adjusted positions will be transferred to trading symbols SWE and SWF respectively. Positions under trading symbols SWE and SWF will commence trading from the business day immediately after the listing day of SPL.
Adjustment Procedures
Adjustment will be made after the close of listing day of SPL prior to the trading commencement date of positions under trading symbols SWE and SWF. The adjustment procedures are as follows:
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Adjustment Ratio (AR)
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(Underlying stock closing price before the ex-date minus Entitlement) / (Underlying stock closing price before the ex-date)
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Rounded to the nearest
4 decimal places
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Adjusted Exercise price (AEP)
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Exercise price of outstanding stock options series × AR
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Rounded to the nearest
2 decimal places
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Adjusted Contract Size (ACS)
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(Exercise price of outstanding stock options series x 500 shares) / AEP
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Rounded to the nearest
4 decimal places
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Remark: Entitlement is SPL’s value times the Entitlement Ratio of for each Swire A share
2SWB stock options contracts are the adjusted contracts generated from capital adjustment made on 14 September 2011 due to proposed interim dividend for the year ending 31 December 2011 (adjustment details are in the circular on the HKEx website).
Contract Details
Details of the adjusted and standard contracts available for trading from the ex-date onwards are shown below:
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Standard
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SWA
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Swire A (ex-entitlement)
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500
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Ex-date
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From the ex-date onwards
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Yes
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Adjusted
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SWB
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Swire A & Entitlement
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ACS*
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14 Sep 2011
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Nil
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No
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Adjusted
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SWC
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Swire A & Entitlement
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500
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Ex-date
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Nil
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No
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Adjusted
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SWD
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Swire A & Entitlement
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ACS*
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Ex-date
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Nil
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No
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Adjusted
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SWE
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Swire A (ex- Entitlement)
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ACS
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The 1st Business Day after the Listing day of SPL
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From introduction date to 28 December 2012
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No
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Adjusted
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SWF
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Swire A (ex-entitlement)
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ACS
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The 1st Business Day after the Listing day of SPL
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From introduction date to 28 June 2012
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No
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*ACS as per the circular regards the capital adjustment of Swire A stock options contract on 14 September 2011.
Ends