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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