Harvey Norman Holdings Limited (HVN) $0.06 Special Dividend

This is the Search Bar
This is a search implemented as a a table
Search ASX Online...

This is the Search Bar
This is a search implemented as a a table
Search ASX Online...

This Notice is being issued to provide Participants with further information on the adjustment implication for HVN ETOs.

Harvey Norman Holdings Limited $0.06 Special Dividend – Adjustment implications for ETOs

ASX Notice No. 0596.20.06 dated 11 June 2020 described the adjustment method that applied to ETOs over Harvey Norman Holdings Limited (ASX Code: HVN) relating to the $0.06 special dividend with ex-dividend date of 22 June 2020.

Effective Date

The effective date of the adjustment is Monday, 22 June 2020, when the underlying security commences trading on an ex-dividend basis.

ASX determined that the last cum-dividend VWAP based on trading on ASX markets on Friday, 19 June 2020 was $3.5089

Standard Method of Adjustment

For an old contract size of 100 shares, the new contract size is unadjusted, using TMC threshold truncation.

Theoretical New Contract Size = Old Contract Size + (total special dividend paid per Old Contract Size)/(S – OD – SD)

Theoretical New Contract Size = 100 + ($0.06*100)/($VWAP-$0.06)

=101.7397 truncated to 100 where the difference of 1.7397 will be cash adjusted based on the below formula.

Strike Factor = Old Contract Size/Theoretical New Contract Size

Strike Factor = 100/101.7397

= 0.982900

For an old contract size of 102 shares, the new contract size will be adjusted to 103 shares, using TMC threshold truncation.

Theoretical New Contract Size = Old Contract Size + (total special dividend paid per Old Contract Size)/(S – OD – SD)

Theoretical New Contract Size = 102 + ($0.06*102)/($VWAP-$0.06)

=103.7745 truncated to 103 where the difference of 0.7745 will be cash adjusted based on the below formula.

Strike Factor = Old Contract Size/Theoretical New Contract Size

Strike Factor = 102/103.7745

= 0.982900

Cash Equalisation Adjustment Payments for Contract Size Roundings

The cash adjustment is calculated by taking the difference between the contract value of the option before and after the adjustment. Variants to the formula apply for rights style adjustments and when the adjustment occurs on the day of the option’s expiry.

Cash adjustment = (BOP * BUV) – (AOP * AUV)

Where

BUV =Before (adjustment) Unit Value = BP * BU rounded to nearest cent

AUV =After (adjustment) Unit Value = AP * AU rounded to nearest cent

BU = units per lot (multiplier) before the adjustment (old traded entity)

AU = units per lot (multiplier) after the adjustment (old traded entity)

BP = for rights style, =SP/Adjustment Factor, for non-rights style=SP.

AP = for rights style, =SP, for non-rights style=SP * Adjustment Factor.

SP = settlement price of the option if not the options expiry day, otherwise the intrinsic price (underlying price-strike price for calls, strike-underlying price for puts) if on expiry date. Refer Notes 1 and 2 below

BOP =pre-adjusted open position Refer Notes 1 and 3 below

AOP =post-adjusted open position Refer Notes 1 and 3 below

Note:

1. Cash adjustments on expiry will apply to exercised positions only.

2. The intrinsic price used for exercised positions on expiry is based on the adjusted strike price for rights style adjustments and the pre-adjusted strike price for non-rights style adjustments. Set negative intrinsic prices to zero i.e. if an out of the money is exercised, the intrinsic price and hence cash adjustment is zero.

3. Pre and post adjusted positions will be the same unless there is a position adjustment factor applied to the open position associated with the adjustment. For rights style use the start of day position (i.e. exclude any UA trading activity), for non-rights style use the (end-of-day) position prior to the adjustment.

4. Cash adjustments will also apply to LEPO positions.

5. For short positions, the result of the cash adjustment formula should have its sign reversed (multiply by -1). For non-LEPO positions the truncation approach ensures that the seller (writer) is always debited and the buyer (taker) is credited. Because the LEPO strike is usually returned to 1c after the adjustment, the holder of a short LEPO position may be credited and long position may be debited.

Refer to table below for adjusted strike and contract size

OLD SIZE	NEW SIZE	OLD STRIKE (CENTS)	NEW STRIKE (CENTS)	Exercise
100	100	1	1	E
100	100	180	177	A
100	100	190	187	A
100	100	195	192	A
100	100	200	197	A
100	100	210	206	A
100	100	220	216	A
100	100	230	226	A
100	100	240	236	A
100	100	250	246	A
100	100	260	256	A
100	100	270	265	A
100	100	280	275	A
100	100	290	285	A
100	100	300	295	A
100	100	310	305	A
100	100	320	315	A
100	100	330	324	A
100	100	340	334	A
100	100	350	344	A
100	100	360	354	A
100	100	370	364	A
100	100	380	374	A
100	100	381	375	E
100	100	390	383	A
100	100	400	393	A
100	100	410	403	A
100	100	420	413	A
100	100	430	423	A
100	100	440	432	A
100	100	441	433	E
100	100	450	442	A
100	100	460	452	A
100	100	470	462	A
100	100	480	472	A
100	100	490	482	A
100	100	500	491	A
100	100	525	516	A
100	100	550	541	A
100	100	575	565	A
100	100	600	590	A
100	100	625	614	A
100	100	650	639	A
102	103	1	1	E
102	103	185	182	A
102	103	190	187	A
102	103	195	192	A
102	103	205	201	A
102	103	215	211	A
102	103	224	220	A
102	103	234	230	A
102	103	244	240	A
102	103	254	250	A
102	103	263	259	A
102	103	273	268	A
102	103	283	278	A
102	103	293	288	A
102	103	303	298	A
102	103	312	307	A
102	103	313	308	E
102	103	322	316	A
102	103	323	317	E
102	103	332	326	A
102	103	333	327	E
102	103	342	336	A
102	103	343	337	E
102	103	351	345	A
102	103	352	346	E
102	103	361	355	A
102	103	362	356	E
102	103	371	365	A
102	103	372	366	E
102	103	381	374	A
102	103	382	375	E
102	103	390	383	A
102	103	400	393	A
102	103	410	403	A
102	103	420	413	A
102	103	429	422	A
102	103	439	431	A
102	103	440	432	E
102	103	449	441	A
102	103	450	442	E
102	103	459	451	A
102	103	460	452	E
102	103	468	460	A
102	103	469	461	E
102	103	478	470	A
102	103	488	480	A
102	103	489	481	E
102	103	512	503	A
102	103	513	504	E
102	103	537	528	A
102	103	561	551	A
102	103	586	576	A
102	103	610	600	A
102	103	634	623	A

Need more information?

Issued by

Brendan Laird, Senior Manager, Settlement Operations

Contact information

Cheng Zhang
1800 814 051
chesshelp@asx.com.au

Notice

Harvey Norman Holdings Limited (HVN) $0.06 Special Dividend – Adjustment Implication for ETOs

Harvey Norman Holdings Limited $0.06 Special Dividend – Adjustment implications for ETOs

Need more information?

Issued by

Contact information

Disclaimer

OLD SIZE	NEW SIZE	OLD STRIKE (CENTS)	NEW STRIKE (CENTS)	Exercise
100	100	1	1	E
100	100	180	177	A
100	100	190	187	A
100	100	195	192	A
100	100	200	197	A
100	100	210	206	A
100	100	220	216	A
100	100	230	226	A
100	100	240	236	A
100	100	250	246	A
100	100	260	256	A
100	100	270	265	A
100	100	280	275	A
100	100	290	285	A
100	100	300	295	A
100	100	310	305	A
100	100	320	315	A
100	100	330	324	A
100	100	340	334	A
100	100	350	344	A
100	100	360	354	A
100	100	370	364	A
100	100	380	374	A
100	100	381	375	E
100	100	390	383	A
100	100	400	393	A
100	100	410	403	A
100	100	420	413	A
100	100	430	423	A
100	100	440	432	A
100	100	441	433	E
100	100	450	442	A
100	100	460	452	A
100	100	470	462	A
100	100	480	472	A
100	100	490	482	A
100	100	500	491	A
100	100	525	516	A
100	100	550	541	A
100	100	575	565	A
100	100	600	590	A
100	100	625	614	A
100	100	650	639	A
102	103	1	1	E
102	103	185	182	A
102	103	190	187	A
102	103	195	192	A
102	103	205	201	A
102	103	215	211	A
102	103	224	220	A
102	103	234	230	A
102	103	244	240	A
102	103	254	250	A
102	103	263	259	A
102	103	273	268	A
102	103	283	278	A
102	103	293	288	A
102	103	303	298	A
102	103	312	307	A
102	103	313	308	E
102	103	322	316	A
102	103	323	317	E
102	103	332	326	A
102	103	333	327	E
102	103	342	336	A
102	103	343	337	E
102	103	351	345	A
102	103	352	346	E
102	103	361	355	A
102	103	362	356	E
102	103	371	365	A
102	103	372	366	E
102	103	381	374	A
102	103	382	375	E
102	103	390	383	A
102	103	400	393	A
102	103	410	403	A
102	103	420	413	A
102	103	429	422	A
102	103	439	431	A
102	103	440	432	E
102	103	449	441	A
102	103	450	442	E
102	103	459	451	A
102	103	460	452	E
102	103	468	460	A
102	103	469	461	E
102	103	478	470	A
102	103	488	480	A
102	103	489	481	E
102	103	512	503	A
102	103	513	504	E
102	103	537	528	A
102	103	561	551	A
102	103	586	576	A
102	103	610	600	A
102	103	634	623	A

OLD SIZE	NEW SIZE	OLD STRIKE (CENTS)	NEW STRIKE (CENTS)	Exercise
100	100	1	1	E
100	100	180	177	A
100	100	190	187	A
100	100	195	192	A
100	100	200	197	A
100	100	210	206	A
100	100	220	216	A
100	100	230	226	A
100	100	240	236	A
100	100	250	246	A
100	100	260	256	A
100	100	270	265	A
100	100	280	275	A
100	100	290	285	A
100	100	300	295	A
100	100	310	305	A
100	100	320	315	A
100	100	330	324	A
100	100	340	334	A
100	100	350	344	A
100	100	360	354	A
100	100	370	364	A
100	100	380	374	A
100	100	381	375	E
100	100	390	383	A
100	100	400	393	A
100	100	410	403	A
100	100	420	413	A
100	100	430	423	A
100	100	440	432	A
100	100	441	433	E
100	100	450	442	A
100	100	460	452	A
100	100	470	462	A
100	100	480	472	A
100	100	490	482	A
100	100	500	491	A
100	100	525	516	A
100	100	550	541	A
100	100	575	565	A
100	100	600	590	A
100	100	625	614	A
100	100	650	639	A
102	103	1	1	E
102	103	185	182	A
102	103	190	187	A
102	103	195	192	A
102	103	205	201	A
102	103	215	211	A
102	103	224	220	A
102	103	234	230	A
102	103	244	240	A
102	103	254	250	A
102	103	263	259	A
102	103	273	268	A
102	103	283	278	A
102	103	293	288	A
102	103	303	298	A
102	103	312	307	A
102	103	313	308	E
102	103	322	316	A
102	103	323	317	E
102	103	332	326	A
102	103	333	327	E
102	103	342	336	A
102	103	343	337	E
102	103	351	345	A
102	103	352	346	E
102	103	361	355	A
102	103	362	356	E
102	103	371	365	A
102	103	372	366	E
102	103	381	374	A
102	103	382	375	E
102	103	390	383	A
102	103	400	393	A
102	103	410	403	A
102	103	420	413	A
102	103	429	422	A
102	103	439	431	A
102	103	440	432	E
102	103	449	441	A
102	103	450	442	E
102	103	459	451	A
102	103	460	452	E
102	103	468	460	A
102	103	469	461	E
102	103	478	470	A
102	103	488	480	A
102	103	489	481	E
102	103	512	503	A
102	103	513	504	E
102	103	537	528	A
102	103	561	551	A
102	103	586	576	A
102	103	610	600	A
102	103	634	623	A

OLD SIZE	NEW SIZE	OLD STRIKE (CENTS)	NEW STRIKE (CENTS)	Exercise
100	100	1	1	E
100	100	180	177	A
100	100	190	187	A
100	100	195	192	A
100	100	200	197	A
100	100	210	206	A
100	100	220	216	A
100	100	230	226	A
100	100	240	236	A
100	100	250	246	A
100	100	260	256	A
100	100	270	265	A
100	100	280	275	A
100	100	290	285	A
100	100	300	295	A
100	100	310	305	A
100	100	320	315	A
100	100	330	324	A
100	100	340	334	A
100	100	350	344	A
100	100	360	354	A
100	100	370	364	A
100	100	380	374	A
100	100	381	375	E
100	100	390	383	A
100	100	400	393	A
100	100	410	403	A
100	100	420	413	A
100	100	430	423	A
100	100	440	432	A
100	100	441	433	E
100	100	450	442	A
100	100	460	452	A
100	100	470	462	A
100	100	480	472	A
100	100	490	482	A
100	100	500	491	A
100	100	525	516	A
100	100	550	541	A
100	100	575	565	A
100	100	600	590	A
100	100	625	614	A
100	100	650	639	A
102	103	1	1	E
102	103	185	182	A
102	103	190	187	A
102	103	195	192	A
102	103	205	201	A
102	103	215	211	A
102	103	224	220	A
102	103	234	230	A
102	103	244	240	A
102	103	254	250	A
102	103	263	259	A
102	103	273	268	A
102	103	283	278	A
102	103	293	288	A
102	103	303	298	A
102	103	312	307	A
102	103	313	308	E
102	103	322	316	A
102	103	323	317	E
102	103	332	326	A
102	103	333	327	E
102	103	342	336	A
102	103	343	337	E
102	103	351	345	A
102	103	352	346	E
102	103	361	355	A
102	103	362	356	E
102	103	371	365	A
102	103	372	366	E
102	103	381	374	A
102	103	382	375	E
102	103	390	383	A
102	103	400	393	A
102	103	410	403	A
102	103	420	413	A
102	103	429	422	A
102	103	439	431	A
102	103	440	432	E
102	103	449	441	A
102	103	450	442	E
102	103	459	451	A
102	103	460	452	E
102	103	468	460	A
102	103	469	461	E
102	103	478	470	A
102	103	488	480	A
102	103	489	481	E
102	103	512	503	A
102	103	513	504	E
102	103	537	528	A
102	103	561	551	A
102	103	586	576	A
102	103	610	600	A
102	103	634	623	A