Larsen & Toubro Ltd. (Sedol B0166K8/EMDB Code 534510.1), an S&P/IFCG and S&P/IFCI India constituent, resumed trading on June 23, 2004. As a result, S&P/EMDB will adjust the index on the same day for the demerger and share capital restructuring not recognized previously due to the suspension of the stock. (Please refer to announcement posted on May 19, 2004.) For keeping the index impact neutral on this day, the whole process of demerger, in which the investors of L&T received two shares of CemCo for every five shares held, and the capital reduction, in which the shares outstanding of L&T is reduced to 124.4018 million and the par value per share is reduced from 10 rupees to 2 rupees, is treated as a theoretical reverse split in the amount of –53.8022 million. The number of shares will be reduced to 124.4 018 million on the following business day.
UltraTech CemCo Ltd., the demerged entity, will be listed on the stock exchanges later on. No definite date is given. It will not be included in S&P/EMDB indices at this time.
Korea – Dacom Corp. Share Decrease (eff. 07/07/2004)
S&P EMDB will decrease the shares for Dacom Corp. (SPID 542173.1/ Sedol 6246574), an S&P/IFCI and S&P/IFCG Index Constituent, effective July 7, 2004. A recent capital increase via a rights offering was under-subscribed by 16.7684 million shares. Had this change been effective on June 22, 2004, the S&P/IFCI market weight of Dacom Corp. would have changed to 0.04% from 0.06%.
MEXICO: Telmex – L Share Increase
Effective July 07, 2004, S&P/EMDB will increase the number of shares outstanding for Telmex – L (EMDB Code 273620.2 / SEDOL 2881689), an S&P/IFCG and S&P/IFCI index constituent, by 375.1119 million shares via a new issue. The company has increased the number of shares as a result of the conversion of debentures into L shares. If the above share increase had occurred on June 22, 2004, the weight of Telmex – L in S&P/IFCI Mexico Index would have increased to 17.06% from 16.38%.
