HKEx Arrangements For Adjustment Of Esprit Holdings Futures And Options

 Hong Kong Exchanges and Clearing Limited (HKEx) announced the arrangements for the adjustment to the contract terms of all open Esprit Holdings Limited (Esprit) futures and options contracts in existence after the market close on 26 October 2012, the business day immediately before the ex-rights day, which is 29 October 2012, to account for Esprit’s one rights share for every 2 existing shares.

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.

For details of the proposed rights issue, please refer to the announcement made by Esprit Holdings Limited on 22 October 2012.

Esprit Futures

Adjustment Procedures

Adjustments will be made to the open positions of Esprit futures contracts which exist after the market close on 26 October 2012, the business day immediately before the ex-rights day. The details of the adjustment procedures are as follows:

* Where $8.00 is the rights issue price for the new shares and $S is the underlying stock closing price on 26 October 2012 (the business day immediately before the ex-rights day).

Trading of Adjusted and Standard Contracts

After the market close on 26 October 2012, the business day immediately before the ex-rights day, the open positions will be transferred to the adjusted futures contracts. In addition, new contracts based on the standard contract multiplier will be introduced for trading on the ex-rights day, 29 October 2012. Details of the adjusted and standard contracts available for trading on and after the ex-rights day are shown below:

Investors should note that the cash settlement amount of adjusted and standard futures contracts on the last trading day will be calculated using their respective contract multipliers. There will not be any changes to the number of open positions and other contract terms after the transfer of positions.

Esprit Options

Adjustment Procedures

Adjustments will be made to the open positions of Esprit options contracts which exist after the market close on 26 October 2012, the business day immediately before the ex-rights day. The details of the adjustment procedures are as follows:

* Where $8.00 is the rights issue price for the new shares and $S is the underlying stock closing price on 26 October 2012 (the business day immediately before the ex-rights day).

Trading of Adjusted and Standard Contracts

After the market close on 26 October 2012, the business day immediately before the ex-rights day, the open positions will be transferred to the adjusted option series. In addition, new option series based on the standard contract size will be introduced for trading on the ex-rights day, 29 October 2012. Details of the adjusted and standard contracts available for trading on and after the ex-rights day are shown below:

Investors should note that the adjusted and standard option series 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.