General SENS Submitter Company - Index Change Advice 20210204 FTSE JSE Ground Rules Update Mergers Restructuring and Complex Takeovers

Index Change Advice – 20210204 FTSE JSE Ground Rules Update Mergers Restructuring and Complex Takeovers

  FTSE JSE Africa Index Series: Mergers, Restructuring and Complex
                Takeovers - Ground Rule Clarification


                                          04 February 2021
FTSE Russell would like to inform clients of the following Ground Rule clarification for the FTSE JSE
Africa Index Series which is effective immediately:




Section 6: Changes to Constituent Companies

6.3       Mergers, Restructuring and Complex Takeovers (updates in bold - to clarify current
practice)

6.3.4     In case of a spin-off or distribution in specie, the new constituent(s)/distributions will be
      added to all indexes that the original company belonged to for a period of at least three days
      (more if the spun-off company does not trade on the effective date). Index constituent changes
      resulting from spin-off will be determined based on the market values at close on day one of
      trading and applied using market values at close on day three of trading, following the date that
      the split begins trading. Consequently the Top 40 or any other index with a fixed number of
      constituents may have extra company(s) for at least three days or a Resources Index may have a
      non-resources company for at least three days.

      For all the FTSE/JSE Equally Weighted Indexes, the weights will be adjusted allowing for the
      companies in the spin-off event. On the day the smallest company(s) is/are deleted, the smallest
      constituent in the spin-off process will take the weight of the removed company(s), while the
      larger constituent will take the sum weight of the spun-off companies. If one of the spun-off
      entities is ineligible it will be deleted from the index, and its weight will be incorporated by the
      remaining constituent involved in the spin-off. In a distribution involving the inclusion of
      a temporary line, the weight of the distribution will be held within the temporary line
      until after settlement, at which point it will merge back into the distributing company.



An updated copy of the FTSE JSE Africa Index Series Ground Rules (Version 7.3) is now available using
the following link: FTSE_JSE_Africa_Index_Series_new.pdf

or from the FTSE Russell website: www.ftserussell.com
For further information please contact FTSE Russell Client Services at info@ftserussell.com or call:

 Australia              +1800 653 680
 Hong Kong              +852 2164 3333
 Japan                  +81 3 4563 6346
 London                 +44 (0) 20 7866 1810
 New York               +1866 551 0617

 JSE Limited:           +27 11 520 7000


Alternatively please visit our website at www.ftserussell.com

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Date: 04-02-2021 05:24:00
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