20080225-Proposed Treatment for SBK and ICBC

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THE PROPOSED TREATMENT OF THE STANDARD BANK CORPORATE ACTION IN THE FTSE/JSE INDICES
11 December 2007
Further to the announcement of the scheme of arrangement between Standard Bank Group and Industrial and Commercial Bank of China Limited (ICBC), FTSE/JSE would like to clarify that the compulsory acquisition of Standard Bank ordinary shares by ICBC from Standard Bank shareholders at a fixed price will be treated as a mandatory offer. This treatment was initially published in an Index Change Advice(ICA) on 18 April 2006. Please see Appendix A below for your perusal.
Please note that the scheme of arrangement will also include a specific issue of shares for cash to ICBC. When details and dates are confirmed and approved a further ICAmay be published if necessary.
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Appendix A

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CHANGE IN THE TREATMENT OF MANDATORY OFFERS IN THE FTSE/JSE INDICES
18 April 2006
A decision has been reached after considering feedback received from the investment community and extensive deliberations with the FTSE/JSE Advisory Committee and FTSE.
FTSE/JSE will adjust for mandatory offers according to the formula below:

the expected opening share price on the ex date will be

Expected Open = [ Closing Price – (Offer percentage * Offer Price) ] / (1 – Offer Percentage)

the price adjustment will be Expected Open – Closing price

Below is an example of how this will be implemented in the indices.
Let us say 32% of a company’s shares are bought back at a fixed price of 8 200 cents, and the market closes on 8 700 cents at close before the ex date. The Expected Open, also referred to as the Adjusted Close, as per the above formula is thus 8 935 cents. The values are illustrated in the table below:
Shares / Price (In Cents) / Value
Portfolio
at Close / 100 / 8 700 / 8,700
Bought back / 32 / 8 200 / 2,624
Remaining shares / 68 / 8 935 / 6,076
This will result in an adjustment of 235 cents (= 8700 – 8935).
The following points are worth noting :

This treatment will only apply to mandatory offers as per the definition above, conditional offers will not qualify.
The normal free float and shares in issue updates still apply as per the current ground rules.
This treatment will apply with immediate effect, however the previous mandatory offers will not be adjusted for and hence no history will be calculated.

For FTSE / JSE index enquiries or further information about FTSE / JSE please contact:
Client Services in UK: / Tel: +44 (0) 20 7866 1810
Client Services in US: / Tel: +1 888 747 FTSE (3873) or +1 212 641 6165
Client Services in Asia Pacific: / Tel: +852 2230 5803 or +65 6223 3738 or +81 3 3581 2811
JSE Limited: / Tel: (27 11) 520 7702 or +520 7777
Or, email your enquiries to , or visit our website at or of Use | Copyright © FTSE