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On October 9, 2006, the Australian Government formally announced the public sale of 2.15 billion shares in Telstra Corp. Ltd. (Telstra). The widely anticipated sale has been formally detailed in the Telstra 3 share offer prospectus, allowing Standard & Poor’s and the Australian Index Committee to formally detail the treatment of Telstra 3 installment receipts within the S&P/ASX indices, including the S&P/ASX 50.
The Telstra 3 share offer will be included within the S&P/ASX 50 in the following manner:- 4,248,049,190 Telstra 3 shares (ASX code: TLSCA.ASX, SEDOL B1FW0K7) will be added to the Index in the form of installment receipts (first installment of partly paid securities) with an IWF of 1.00, effective after the close of business November 23, 2006.
- Telstra 3 shares will rank equally with existing Telstra shares (ASX code: TLS.ASX, SEDOL 6087289) in the S&P/ASX 50 Index. This will result in two classes of securities relating to Telstra within the same index. It should be noted, however, that the addition of the Telstra 3 installment receipts in the Index will not cause the removal of another constituent.
- Telstra 3 shares will be added to the Index using its closing price on November 23, 2006.
“The Telstra 3 share issue is the largest in the Australian market in 2006 and we are pleased to have been able to provide Index certainty for potential global investors in the S&P suite of Indices” said Simon Karaban, Index Services. The Australian government has A$15.5 billion of shares with over A$9 billion via the retail offer reflecting the strong level of share ownership by institutional and non institutional players both domestically and globally” said Mr Karaban.
Additions to and deletions from an S&P equity index do not in any way reflect an opinion on the investment merits of the companies concerned.
