Hong Kong Exchanges and Clearing Limited (HKEx) has announced the arrangements for the adjustment to China Mengniu Dairy Company Limited (China Mengniu Dairy) structured products and options to account for China Mengniu Dairy's bonus issue.
Overview
|
Company (Stock Code) |
China Mengniu Dairy Company Limited (2319) |
|
Corporate Action |
1 Bonus Share for one existing Share held |
|
Ex-bonus day |
13 October 2015 |
For details, please refer to the announcement made by China Mengniu Dairy on 4 September 2015.
Highlights of the adjustment arrangements are set forth below. Investors should consult their brokers for further details, or if they have any questions regarding the adjustment.
Structured products with shares of China Mengniu Dairy as underlying asset
The listing documents of all existing structured products with the shares of China Mengniu Dairy as underlying asset contain provisions that deal with a bonus issue. Structured product issuers will make announcements in the evening of 12 October 2015 regarding the relevant adjustments (including the adjusted entitlement and adjusted exercise price as appropriate) and investors should read the contents of such announcements carefully.
China Mengniu Dairy Options
Trading Arrangements
The trading arrangements for the existing China Mengniu Dairy stock options under trading symbol MEN will be as follows:
| 1. |
Adjustment and Transfer of Outstanding Positions Open positions of China Mengniu Dairy stock option series under trading symbol MEN which exist after the market close on the business day immediately before the ex-bonus day will be adjusted and transferred to stock option series under trading symbol MEA. |
| 2. |
Introduction of New Stock Option Series for Trading On the ex-bonus day, new China Mengniu Dairy stock option series based on the standard contract size will be introduced for trading under the standard trading symbol MEN. |
Details of the adjustment procedures for China Mengniu Dairy stock options series under trading symbol MEN are as follows:
|
Adjustment Term |
Formula |
Remarks |
|
Adjustment Ratio (AR) |
1 share / (1 share + 1 bonus share) = 0.5000 |
Rounded to the nearest |
|
Adjusted Exercise Price (AEP) |
Exercise price of outstanding stock option series x AR |
Rounded to the nearest |
|
Adjusted Contract Size (ACS) |
Exercise price of outstanding stock option series x |
Rounded to the nearest |
|
Contract |
Trading Symbol |
Contract Size(Shares) |
Availability For Trading |
Addition of New Stock Option Series on and after the ex-bonus day |
|
Adjusted |
MEA |
ACS |
From ex-bonus day to |
No |
|
Standard |
MEN |
1,000 |
From ex-bonus day onwards |
Yes |
Investors should note that the adjusted and standard stock option series will have different contract sizes. There will not be any changes to the number of open positions and other contract terms after the transfer of positions. For detailed trading and clearing operational arrangement, please refer to the circular.
