Visit our COVID-19 site for latest information regarding how we can support you. For up to date information about the pandemic visit www.sacoronavirus.co.za.

bs-regular
bs-extra-light
bs-light
bs-light
bs-cond-light-webfont
bs-medium
bs-bold
bs-black

Community


Share knowledge. Ask questions. Find answers.

Online Share Trading

Engage and learn about markets and trading online

Standard Bank-Simon please explain

Reply
platsak
Super Contributor
Got e-mail from sbk: Holders of SBKQ will not receive this cash consideration and therefore the JSE adjusts the SSF quantity held by each client to compensate the client. Based on current prices, the ratio of the shares being repurchased and the consideration being paid, we expect that every 19 SBKQ contracts (long or short) held will be adjusted by 1 new contract. What does this mean precisely?
0 Kudos
4 REPLIES 4
DCTrader
Super Contributor
I'm guessing it goes something like this... your SBKQ (The SSF on SBK) gives you an exposure to the underlying. So about 15 contracts exposes you to 100k of the underlying. SBK is buying back 11.1% of your holding (ie. 11.1% of your underlying exposure). So to compensate for this, SBKQ needs to be adjusted because your exposure level has reduced. You'll have fewer contracts, but you'll receive a cash compensation... If it's at the same R136 rate, I'm not sure...
0 Kudos
SimonPB
Valued Contributor
it means that for every 19 SSF SBK contracts you hold you'll get a free contract. Roundings will be paid out in cash. of course this is based on the current price so final calcs will be known on Monday.
0 Kudos
platsak
Super Contributor
Thanks. Does anyone know why the share is dropping drastically.
0 Kudos
asylum
Super Contributor
look at futures on the dow all will be revealed
0 Kudos