Unless the actual distribution changes materially from what has been announced, the S&P/MIB Index will treat the whole amount of the announced dividend as an Extraordinary Dividend, in accordance with the section of the methodology outlined below:
- Extraordinary Dividends - These are treated in accordance with Borsa Italiana’s practices for the MIB 30; namely that the portion of the dividend assigned as an extraordinary dividend will result in a K factor calculated as follows:
K= [(official price on the day before the ex-date - the special dividend)/ official price on the day before the ex-date]
The last traded price for the constituent and the shares outstanding are adjusted using the K factor produced by BIt and consequently there is no divisor adjustment.The Index treatment implies that the cash received assigned as a special dividend is reinvested into that stock and the overall weight of the constituent in the index remains the same.
Weekly updates regarding the treatment of this corporate action will be available on the S&P website, Italian Indices section, in a file download entitled 'S&P/MIB Upcoming Corporate Actions.X:S
Click here for further details.
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