Telecom Corporation of New Zealand Limited has announced that it will demerge into two separate listed companies, Telecom Corporation of New Zealand Limited (Telecom) and Chorus Limited (Chorus). Telecom has announced that Telecom shareholders will receive 1 Chorus share for every 5 Telecom shares held on the record date of the demerger. Below is a timetable of key events relating to the demerger:
Events Time
Anticipated receipt of final court orders. 14 November 2011
Last date Telecom Shares trade on the NZX Main Board with an entitlement to participate in the Demerger. 22 November 2011
Ex date – First date Telecom shares trade on the NZX Main Board without an entitlement to participate in the Demerger.
Chorus Shares commence trading on the NZX Main Board. 23 November 2011
23 November 2011
Assuming the demerger proceeds, the following outlines the index treatment of the demerger.
Currently Telecom is in the NZX50 Index, NZX50 Portfolio Index, NZX15 Index, NZX10 Index, NZX ALL Index and Morrison Index. Telecom will remain in these indices.
Chorus will be immediately added to those indices Telecom is a constituent of on the ex-date of the demerger.
The number of Chorus indexed shares in each index will be one fifth of the number of Telecom indexed shares at market close on 22 November 2011.
The position of Chorus will be reviewed at the next index rebalancing date.
The NZX50 Index, NZX50 Portfolio Index, NZX15 Index, NZX10 Index and Morrison Index will have one more constituent than is usually the case until the index is next rebalanced after market close on Friday 16 December 2011. For example the NZX50 Index will have 51 stocks, when it usually has 50 stocks.