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 Terms of Use | Copyright © 2021 FTSE Russell Date: 04-02-2021 05:24:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.