Hong Kong Exchanges and Clearing Limited (HKEx) has announced the arrangements for the adjustment to Cheung Kong (Holdings) Limited (Cheung Kong) futures and options and Cheung Kong shares-related structured products to account for the company's proposed reorganisation.
Overview
Company (Stock Code) |
Cheung Kong (Holdings) Limited (0001) |
Corporate Action |
|
Last day for dealing of |
10 March 2015 |
Effective Date of Adjustment of |
18 March 2015 |
Name of New Holding Company |
CK Hutchison Holdings Limited (0001) |
Dealing in CKH Holdings Shares, Stock Options and Stock Futures Commence |
18 March 2015 |
For details of the reorganisation proposal, please refer to the announcements made by Cheung Kong on 9 January and 5 February 2015:
http://www.hkexnews.hk/listedco/listconews/SEHK/2015/0109/LTN20150109205.pdf
http://www.hkexnews.hk/listedco/listconews/SEHK/2015/0205/LTN201502051257.pdf
http://www.hkexnews.hk/listedco/listconews/SEHK/2015/0205/LTN201502051265.pdf
Highlights of the adjustment arrangements are set forth below. Investors should consult their brokers for further details, or if they have any questions regarding the adjustment.
Cheung Kong-related structured products
The listing documents for all existing Cheung Kong shares-related structured products contain provisions that deal with the reorganisation and/or merger of the company. Implementation of Cheung Kong's reorganisation proposal will result in CKH Holdings shares replacing Cheung Kong shares as the underlying shares of all existing Cheung Kong shares-related structured products.
Structured product issuers are required to make announcements regarding adjustments to the terms of their structured products, and investors should read the contents of such announcements carefully.
Cheung Kong Futures
Trading Arrangements
The trading arrangements for the existing Cheung Kong stock futures under trading symbol CKH will be as follows:
1. |
Suspension of Trading |
2. |
Adjustment and Transfer of Outstanding Positions |
3. |
Introduction of New Stock Futures Series for Trading |
CKH Holdings Futures to be available for trading from 18 March 2015
Contract |
Trading Symbol |
Contract Multiplier(Shares) |
Availability for Trading |
Addition of New Stock Futures Series on and after the Effective Date |
Standard |
CKH |
500 |
From effective date onwards |
Yes |
Adjusted |
CKB |
1,000 |
From effective date to |
No |
Cheung Kong Options
Trading Arrangements
The trading arrangements for the existing Cheung Kong stock options under trading symbol CKH and CKA1 will be as follows:
1. |
Suspension of Trading and Exercise |
2. |
Adjustment and Transfer of Outstanding Positions |
3. |
Introduction of New Stock Option Series for Trading |
CKH Holdings Options to be available for trading from 18 March 2015
Contract |
Trading Symbol |
Contract Size(Shares) |
Availability For Trading |
Addition of New Stock Option Series on and after the Effective Date |
Standard |
CKH |
500 |
From effective date onwards |
Yes |
Adjusted |
CKA |
*ACS |
Not available for trading from effective date onwards |
No |
Adjusted |
CKB |
1,000 |
From effective date to |
No |
Adjusted |
CKC |
ACS |
From effective date to |
No |
* | ACS (Adjusted Contract Size) as per the circular regarding the adjustment of Cheung Kong stock option contracts on 2 May 2014. |
1 CKA stock option contracts are the adjusted contracts generated from capital adjustment made on 5 May 2014 due to a special dividend.