IOOF Holdings Limited (ASX Code: IFL) $0.02 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...

IOOF Holdings Limited $0.02 Special Dividend – Adjustment implications for ETOs

ASX Notice No. 1168.21.08 dated 27 August 2021 described the adjustment method that applied to ETOs over IOOF Holdings Limited (ASX Code: IFL) relating to the $0.02 special dividend with ex-dividend date of 07 September 2021.

Effective Date

The effective date of the adjustment is Tuesday, 07 September 2021, 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 Monday, 06 September 2021 was $4.7272

Standard Method of Adjustment

For an old contract size of 100 shares, the new contract size is un-adjusted, 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 + ($0.02*100)/($VWAP-$0.095-$0.02)

=100.4336 truncated to 100 where the difference of 0.4336 will be cash adjusted based on the below formula.

Strike Factor = Old Contract Size/Theoretical New Contract Size

Strike Factor = 100/100.4336

= 0.995683

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	197	196	A
100	100	198	197	A
100	100	217	216	A
100	100	218	217	A
100	100	226	225	A
100	100	235	234	A
100	100	237	236	A
100	100	245	244	A
100	100	255	254	A
100	100	257	256	A
100	100	260	259	A
100	100	265	264	A
100	100	275	274	A
100	100	277	276	A
100	100	280	279	A
100	100	285	284	A
100	100	287	286	A
100	100	290	289	A
100	100	295	294	A
100	100	297	296	A
100	100	300	299	A
100	100	305	304	A
100	100	307	306	A
100	100	310	309	A
100	100	315	314	A
100	100	317	316	A
100	100	320	319	A
100	100	324	323	A
100	100	326	325	A
100	100	330	329	A
100	100	334	333	A
100	100	335	334	E
100	100	336	335	A
100	100	340	339	A
100	100	344	343	A
100	100	345	344	E
100	100	346	345	A
100	100	350	348	A
100	100	354	352	A
100	100	356	354	A
100	100	360	358	A
100	100	364	362	A
100	100	366	364	A
100	100	370	368	A
100	100	373	371	A
100	100	376	374	A
100	100	380	378	A
100	100	383	381	A
100	100	386	384	A
100	100	390	388	A
100	100	393	391	A
100	100	396	394	A
100	100	400	398	A
100	100	403	401	A
100	100	406	404	A
100	100	410	408	A
100	100	413	411	A
100	100	415	413	A
100	100	420	418	A
100	100	422	420	A
100	100	425	423	A
100	100	430	428	A
100	100	432	430	A
100	100	435	433	A
100	100	440	438	A
100	100	442	440	A
100	100	445	443	A
100	100	446	444	E
100	100	450	448	A
100	100	452	450	A
100	100	455	453	A
100	100	456	454	E
100	100	460	458	A
100	100	462	460	A
100	100	465	463	A
100	100	470	468	A
100	100	472	470	A
100	100	475	473	A
100	100	480	478	A
100	100	482	480	A
100	100	485	483	A
100	100	490	488	A
100	100	492	490	A
100	100	495	493	A
100	100	500	498	A
100	100	516	514	A
100	100	519	517	A
100	100	525	523	A
100	100	540	538	A
100	100	544	542	A
100	100	550	548	A
100	100	565	563	A
100	100	569	567	A
100	100	575	573	A
100	100	590	587	A
100	100	594	591	A
100	100	600	597	A
100	100	614	611	A
100	100	618	615	A
100	100	625	622	A
100	100	639	636	A
100	100	643	640	A
100	100	650	647	A
100	100	664	661	A
100	100	668	665	A
100	100	675	672	A
100	100	688	685	A
100	100	692	689	A
100	100	693	690	E
100	100	700	697	A
100	100	737	734	A
100	100	742	739	A
100	100	743	740	E

Need more information?

Issued by

Brendan Laird, Senior Manager, Settlement Operations

Contact information

Eldon Hernando
1800 814 051
chesshelp@asx.com.au

Notice

IOOF Holdings Limited (ASX Code: IFL) $0.02 Special Dividend – Adjustment Implication 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	197	196	A
100	100	198	197	A
100	100	217	216	A
100	100	218	217	A
100	100	226	225	A
100	100	235	234	A
100	100	237	236	A
100	100	245	244	A
100	100	255	254	A
100	100	257	256	A
100	100	260	259	A
100	100	265	264	A
100	100	275	274	A
100	100	277	276	A
100	100	280	279	A
100	100	285	284	A
100	100	287	286	A
100	100	290	289	A
100	100	295	294	A
100	100	297	296	A
100	100	300	299	A
100	100	305	304	A
100	100	307	306	A
100	100	310	309	A
100	100	315	314	A
100	100	317	316	A
100	100	320	319	A
100	100	324	323	A
100	100	326	325	A
100	100	330	329	A
100	100	334	333	A
100	100	335	334	E
100	100	336	335	A
100	100	340	339	A
100	100	344	343	A
100	100	345	344	E
100	100	346	345	A
100	100	350	348	A
100	100	354	352	A
100	100	356	354	A
100	100	360	358	A
100	100	364	362	A
100	100	366	364	A
100	100	370	368	A
100	100	373	371	A
100	100	376	374	A
100	100	380	378	A
100	100	383	381	A
100	100	386	384	A
100	100	390	388	A
100	100	393	391	A
100	100	396	394	A
100	100	400	398	A
100	100	403	401	A
100	100	406	404	A
100	100	410	408	A
100	100	413	411	A
100	100	415	413	A
100	100	420	418	A
100	100	422	420	A
100	100	425	423	A
100	100	430	428	A
100	100	432	430	A
100	100	435	433	A
100	100	440	438	A
100	100	442	440	A
100	100	445	443	A
100	100	446	444	E
100	100	450	448	A
100	100	452	450	A
100	100	455	453	A
100	100	456	454	E
100	100	460	458	A
100	100	462	460	A
100	100	465	463	A
100	100	470	468	A
100	100	472	470	A
100	100	475	473	A
100	100	480	478	A
100	100	482	480	A
100	100	485	483	A
100	100	490	488	A
100	100	492	490	A
100	100	495	493	A
100	100	500	498	A
100	100	516	514	A
100	100	519	517	A
100	100	525	523	A
100	100	540	538	A
100	100	544	542	A
100	100	550	548	A
100	100	565	563	A
100	100	569	567	A
100	100	575	573	A
100	100	590	587	A
100	100	594	591	A
100	100	600	597	A
100	100	614	611	A
100	100	618	615	A
100	100	625	622	A
100	100	639	636	A
100	100	643	640	A
100	100	650	647	A
100	100	664	661	A
100	100	668	665	A
100	100	675	672	A
100	100	688	685	A
100	100	692	689	A
100	100	693	690	E
100	100	700	697	A
100	100	737	734	A
100	100	742	739	A
100	100	743	740	E

OLD SIZE	NEW SIZE	OLD STRIKE (CENTS)	NEW STRIKE (CENTS)	Exercise
100	100	1	1	E
100	100	197	196	A
100	100	198	197	A
100	100	217	216	A
100	100	218	217	A
100	100	226	225	A
100	100	235	234	A
100	100	237	236	A
100	100	245	244	A
100	100	255	254	A
100	100	257	256	A
100	100	260	259	A
100	100	265	264	A
100	100	275	274	A
100	100	277	276	A
100	100	280	279	A
100	100	285	284	A
100	100	287	286	A
100	100	290	289	A
100	100	295	294	A
100	100	297	296	A
100	100	300	299	A
100	100	305	304	A
100	100	307	306	A
100	100	310	309	A
100	100	315	314	A
100	100	317	316	A
100	100	320	319	A
100	100	324	323	A
100	100	326	325	A
100	100	330	329	A
100	100	334	333	A
100	100	335	334	E
100	100	336	335	A
100	100	340	339	A
100	100	344	343	A
100	100	345	344	E
100	100	346	345	A
100	100	350	348	A
100	100	354	352	A
100	100	356	354	A
100	100	360	358	A
100	100	364	362	A
100	100	366	364	A
100	100	370	368	A
100	100	373	371	A
100	100	376	374	A
100	100	380	378	A
100	100	383	381	A
100	100	386	384	A
100	100	390	388	A
100	100	393	391	A
100	100	396	394	A
100	100	400	398	A
100	100	403	401	A
100	100	406	404	A
100	100	410	408	A
100	100	413	411	A
100	100	415	413	A
100	100	420	418	A
100	100	422	420	A
100	100	425	423	A
100	100	430	428	A
100	100	432	430	A
100	100	435	433	A
100	100	440	438	A
100	100	442	440	A
100	100	445	443	A
100	100	446	444	E
100	100	450	448	A
100	100	452	450	A
100	100	455	453	A
100	100	456	454	E
100	100	460	458	A
100	100	462	460	A
100	100	465	463	A
100	100	470	468	A
100	100	472	470	A
100	100	475	473	A
100	100	480	478	A
100	100	482	480	A
100	100	485	483	A
100	100	490	488	A
100	100	492	490	A
100	100	495	493	A
100	100	500	498	A
100	100	516	514	A
100	100	519	517	A
100	100	525	523	A
100	100	540	538	A
100	100	544	542	A
100	100	550	548	A
100	100	565	563	A
100	100	569	567	A
100	100	575	573	A
100	100	590	587	A
100	100	594	591	A
100	100	600	597	A
100	100	614	611	A
100	100	618	615	A
100	100	625	622	A
100	100	639	636	A
100	100	643	640	A
100	100	650	647	A
100	100	664	661	A
100	100	668	665	A
100	100	675	672	A
100	100	688	685	A
100	100	692	689	A
100	100	693	690	E
100	100	700	697	A
100	100	737	734	A
100	100	742	739	A
100	100	743	740	E

OLD SIZE	NEW SIZE	OLD STRIKE (CENTS)	NEW STRIKE (CENTS)	Exercise
100	100	1	1	E
100	100	197	196	A
100	100	198	197	A
100	100	217	216	A
100	100	218	217	A
100	100	226	225	A
100	100	235	234	A
100	100	237	236	A
100	100	245	244	A
100	100	255	254	A
100	100	257	256	A
100	100	260	259	A
100	100	265	264	A
100	100	275	274	A
100	100	277	276	A
100	100	280	279	A
100	100	285	284	A
100	100	287	286	A
100	100	290	289	A
100	100	295	294	A
100	100	297	296	A
100	100	300	299	A
100	100	305	304	A
100	100	307	306	A
100	100	310	309	A
100	100	315	314	A
100	100	317	316	A
100	100	320	319	A
100	100	324	323	A
100	100	326	325	A
100	100	330	329	A
100	100	334	333	A
100	100	335	334	E
100	100	336	335	A
100	100	340	339	A
100	100	344	343	A
100	100	345	344	E
100	100	346	345	A
100	100	350	348	A
100	100	354	352	A
100	100	356	354	A
100	100	360	358	A
100	100	364	362	A
100	100	366	364	A
100	100	370	368	A
100	100	373	371	A
100	100	376	374	A
100	100	380	378	A
100	100	383	381	A
100	100	386	384	A
100	100	390	388	A
100	100	393	391	A
100	100	396	394	A
100	100	400	398	A
100	100	403	401	A
100	100	406	404	A
100	100	410	408	A
100	100	413	411	A
100	100	415	413	A
100	100	420	418	A
100	100	422	420	A
100	100	425	423	A
100	100	430	428	A
100	100	432	430	A
100	100	435	433	A
100	100	440	438	A
100	100	442	440	A
100	100	445	443	A
100	100	446	444	E
100	100	450	448	A
100	100	452	450	A
100	100	455	453	A
100	100	456	454	E
100	100	460	458	A
100	100	462	460	A
100	100	465	463	A
100	100	470	468	A
100	100	472	470	A
100	100	475	473	A
100	100	480	478	A
100	100	482	480	A
100	100	485	483	A
100	100	490	488	A
100	100	492	490	A
100	100	495	493	A
100	100	500	498	A
100	100	516	514	A
100	100	519	517	A
100	100	525	523	A
100	100	540	538	A
100	100	544	542	A
100	100	550	548	A
100	100	565	563	A
100	100	569	567	A
100	100	575	573	A
100	100	590	587	A
100	100	594	591	A
100	100	600	597	A
100	100	614	611	A
100	100	618	615	A
100	100	625	622	A
100	100	639	636	A
100	100	643	640	A
100	100	650	647	A
100	100	664	661	A
100	100	668	665	A
100	100	675	672	A
100	100	688	685	A
100	100	692	689	A
100	100	693	690	E
100	100	700	697	A
100	100	737	734	A
100	100	742	739	A
100	100	743	740	E