Changes following the merger between PCCW and CWHKT
As the merger between PCCW and CWHKT was approved at an extraordinary general meeting of CWHKT on 3 July 2000, relevant changes will be made to the constituent stocks of the following indexes: Hang Seng Index (HSI), Hang Seng London Reference Index (HSLRI), Hang Seng 100 (HS100), New Hang Seng MidCap 50 Index (New HSMCI) and the Hang Seng IT Series of Indexes which comprises the Hang Seng IT Index (HSITI) and Hang Seng IT Portfolio Index (HSITP).
Subject to the PCCW and CWHKT merger being duly approved by the court, then following changes will take effect on 2 August 2000, the date when CWHKT will be suspended from trading:
For the HSI, Pacific Century CyberWorks Ltd. (1186) will be added and Cable & Wireless HKT Ltd. (8) removed. For the HSLRI, Cable & Wireless HKT Ltd. (8) will be removed. For the HS100, Global Tech (Holdings) Ltd. (143) will be added and Cable & Wireless HKT Ltd. (8) removed. For the New HSMCI, Oriental Union Holdings Ltd. (1182) will be added and Global Tech (Holdings) Ltd. (143) removed. For the HSITI and HSITP, Cable & Wireless HKT Ltd. (8) will be removed.
Market Capitalisation of New PCCW Shares for Use in Index Calculation
According to the scheme document for the merger between PCCW and CWHKT, the number of new PCCW shares to be issued to the existing CWHKT shareholders will be ascertained from 8 to 14 August 2000. As the changes in constituents will take place on 2 August 2000, an interim measure will be adopted to reflect the merger of the two companies in the indexes. The indexes will be calculated based on the minimum number of new PCCW shares to be issued, that is, assuming that all CWHKT shareholders will elect the combination alternative. The calculation will be as follows:
Number of PCCW shares to be used in index calculation = Existing number of PCCW shares + New PCCW shares to be issued under the combination alternative (that is, 0.7116 new PCCW shares for every existing CWHKT share)
When the number of PCCW's issued shares is finalised on 14 August, the number of PCCW shares for the calculation of the indexes will be updated on the following day, using the actual record of the share registrar as at 14 August 2000.
Changes as a Result of the Regular Quarterly Review
The following changes will be made to constituents of the Hang Seng Index (HSI) and the Hang Seng London Reference Index (HSLRI), effective 2 August 2000:
For the HSI, Legend Holdings Ltd. (992) and Li & Fung Ltd. (494) will be added and Great Eagle Holdings Ltd. (41) and Shangri-La Asia Ltd. (69) will be removed. For the HSLRI, Great Eagle Holdings Ltd. (41) and Shangri-La Asia Ltd. (69) will be removed.
The Hang Seng family of indexes is managed and compiled by HSI Services Limited, which is a wholly-owned subsidiary of Hang Seng Bank. The members of the index family include the Hang Seng Index, Hang Seng 100, Hang Seng China-Affiliated Corporations Index, Hang Seng China Enterprises Index, New Hang Seng MidCap 50 Index, Hang Seng IT Index, Hang Seng IT Portfolio Index, Hang Seng London Reference Index and Hang Seng Asia Index. For further information on the Hang Seng family of indexes, please visit the company's website at www.hsi.com.hk.
