Euronext Paris: Expert Commission Revises Indices Change In Methodology

In view of the rise in the number of listed companies controlled by another represented in the CAC 40 index, but which cannot be considered a financial holding company, the Expert Commission in charge of indices has adopted the following new rule.

Where one company represented in the CAC 40 is controlled, within the meaning of the Company Act of 22 July 1966, by another also represented in the index, the weighting of the company controlled will be limited to the portion of equity not held by the parent company. The portion of equity used for the calculation of the index will be between 5 and 60%, the actual figure being rounded to the multiple of 5% immediately above. Thus, for example, if the portion of equity not held by the parent is 56%, 60% of the company's market capitalisation will be factored into the calculation of the index.

This rule applies to controlled companies in the CAC 40 index and, for the sake of consistency, to the same companies in SBF 120 and SBF 250 index samples.