Following the official result of the takeover bid by the French company Suez (Euronext 100/NextCAC70) for the Belgium company Electrabel (Euronext 100/NextCAC70), Electrabel will be removed from the Euronext 100 Index and NextCAC70 Index effective Friday 18 November 2005.
In accordance with the rules of the Euronext 100 Index the removed company will not be replaced immediately, but at the next quarterly review (effective 2 January 2006). As of Friday 18 November 2005, the Euronext 100 Index will consist of 99 companies.
In accordance with the rules of the NextCAC70 Index the removed company will not be replaced immediately. The NextCAC70 Index will consist of 69 companies until the Euronext Indices Selection Committee selects a replacement.
Information/Isin codes
Information about Electrabel:
Isin code: BE0003637486
Mkt cap: 22,955 million Euro
Index: removed from Euronext 100 Index and NextCAC70 Index effective Friday 18 November 2005
Information about Suez:
Isin code: FR0000120529
New nr of shares in index: 1,259,979,355
Index: Euronext 100 Index, NextCAC70 Index
Rule changes
Euronext announces the following rule changes with respect to the Euronext 100 Index, the Next 150 Index, the NextEconomy Index and the NextPrime Index. The rule changes are approved by the Euronext Indices Steering Committee.
All rule changes will come into effect on 15 February 2006, observing the 3-months notification period. The new rules will be published on www.euronext.com.
Rule change – special dividend
The following amendment is made to the rules for the operational adjustment of the Euronext 100 Index when dividends are distributed:
Current rule:
6.4.7
In principle the Euronext 100 Index will not be adjusted to take account of periodical cash dividends on constituent securities, however this being on the understanding that the compiler may decide otherwise. The compiler will in any event not use this power if this dividend is less than 10% of the closing price of the relevant stock on Euronext on the last day that the stock is traded cum dividend. If this power is used, the divisor of the index will be adjusted so that the value of the index remains the same.
New rule:
6.4.7
In the case of cash or scrip dividends, the index will only be adjusted if these dividends are special.The compiler will use the following criteria for deciding whether a dividend should be considered to be a special dividend:
(a)
the declaration by a company of a dividend additional to those dividends declared as part of the company’s normal results and dividend reporting cycle; merely an adjustment to the timing of the declaration of a company’s expected dividend would not be considered as a special dividend circumstance; or
(b)
the identification of an element of a dividend paid in line with a company’s normal results and dividend reporting cycle as an element that is unambiguously additional to the company’s normal payment.
For the purpose of clarification, the compiler will not make an adjustment for the following situations:,ol>
Next 150 Index: rule 6.4.7
NextPrime Index: rule 6.3.7
NextEconomy Index: rule 6.3.7
Rule change – spin off / demerger
The following extension to the current rule to clarify the treatment of a spin off or similar situation is made:
Current rule:
6.4.5 >br>
In the event that a company included in the Euronext 100 Index is split up, the securities resulting from the split, including the original stock where appropriate, will continue to be included in the index providing they are large enough to qualify in their own right. A stock qualifying in its own right must rank higher than position 100 by market capitalisation. The index may then temporarily consist of more than or fewer than 100 securities until the next periodical adjustment takes place. If the total post-market capitalisation of the stocks resulting from the split differs from the pre-market capitalisation of the original stock, the divisor of the index is adjusted. For the purposes of these rules a split-up is taken to mean a legal demerger, a spin-off or another situation which the compiler deems to be similar.
New rule:
6.4.5
In the event that a company included in the Euronext 100 Index is split up, the securities resulting from the split, including the original stock where appropriate, will continue to be included in the index providing they are large enough to qualify in their own right. A stock qualifying in its own right must rank higher than position 100 by market capitalisation. The index may then temporarily consist of more than or fewer than 100 securities until the next periodical adjustment takes place. If the total post-market capitalisation of the stocks resulting from the split differs from the pre-market capitalisation of the original stock, the divisor of the index is adjusted. For the purposes of these rules a split-up is taken to mean a legal demerger, a spin-off or another situation which the compiler deems to be similar. In case the shareholder of the company which was originally included in the Euronext 100 Index does not automatically receive shares in a company which is created as a result of the split up, this company is considered to be a newly listed company. This newly listed company will not be included in the index immediately. It will be included in the index if it complies with the requirements for inclusion in the Euronext 100 Index as laid down in section 1 of these rules.
This rule change is also applicable for
Next 150 Index: rule 6.4.5
Rule change – selection rules NextEconomy Index and NextPrime Index
For the NextEconomy Index and NextPrime Index, a part of the current groundrules will be changed. These changes are made to emphasize the fact that the NECO- and NPRI- segments inclusions and exclusions are leading for those indices.
The changes are applied to the following parts of the ground rules:
Chapter 1
Chapter 5 (is removed)
Chapter 6
The exact changes that will be made are included in the appendix of this Press Release.
The Euronext 100 Index and Next 150 Index have been published since 2 October 2000. They are made up of the 250 securities with the highest market capitalisations traded on the official markets of Euronext. In order to be included in the indices the securities must meet liquidity criteria that are specified in the rules of the indices. Euronext Indices B.V. is the compiler of the indices under the supervision of the independent Euronext Indices Steering Committee.
