tkg/vod unbundling

[#1]

What happens to holders of TKG SSF's when VOD is unbundled?

[eddy66]

That is exactly what I want to know? Maybe Simon can help us here?? If the shareprice gets adjusted to lets say R50 for arguments sake from R100,that does not signify as a loss of 50% cause its just the adjusted price cause of the unbundling,right? If this was the case,all you have to do is short TKG and then make 50%...

[#3]

Also, say I hold 6 contracts,do I change to 3 VOD and 3 TKG, do I get a choice, and does my margin get split between the two,or could I have the option of paying extra margin for 6 VOD contracts?

[SimonPB]

both the special div and unbundling will be price neutral events .. safex will advise as to adjustments ..

[eddy66]

To be honest I don't know what price neutral events mean.Simon explain it like you would a 5 year old please...

[SimonPB]

lets say before the LDT tkg is R100, and then post the ldt tkg is R50 and vod R50 .. you would have neither lost nor gained anything ... there after of course it is back to normal market moves ..