Suncorp Group Limited (ASX Code: SUN) announced the details of a capital return, special and ordinary dividend payment.  Suncorp will pay each shareholder a capital return of $3.00 per share held; a special dividend of $0.22 per share; an ordinary dividend of $0.41 and an equal and proportionate share consolidation relating to the return of capital, through the conversion of each ordinary share into 0.8511 shares. 

Please refer to Suncorp’s market announcements for more information. 

Indicative timetable impacting SUN ETOs

Effective Date

All trading in SUN ETO contracts will be on an adjusted basis effective on the ex-date Monday, 17 February 2025.

This standard method of adjustment will be processed on Friday, 14 February 2025 after market close. ASX will calculate and perform the following 3 adjustments to open positions.

Contract Size

TC = BC   +     ____R______                             

                       (S – r - d)(OC/BC)

Where

TC = theoretical new contract size (prior to any rounding) which is used in intermediate calculations

OC = old contract size (currently 100)

BC = number of consolidated shares attributable to each OC (BC = 0.8511*100 = 85.11)

r = the value of the cash return attributable to each Underlying Financial Product (r = $3.22)

d = ordinary dividend (d=0.41)

R = value of cash return attributable to each OC (R = $3.22 * 100 = $322)

S = VWAP of the Underlying Financial Product on the last date of cum and pre-consolidated trading (14 February 2025) 

Exercise Price

New Exercise Price = Old Exercise Price x Old Contract Size/ Theoretical New Contract Size

The strike factor (OC/TC) for all contract sizes will be based on the result calculated for the standard 100 contract size.

The theoretical new contract size is calculated to the nearest four decimal points in the intermediate calculation for the new exercise price.

eg;

For 100 contract size:

New Size                = 85.11 + 322/((VWAP-3.22-0.41)*(100/85.11)) subject to TMC threshold                                                    truncation

New Strike             = Old Strike x 100/Theoretical New Contract Size calculated to 4 decimal                                              places.

                                 = Old Strike x strike factor, rounded to 6 decimal places.

Cash Adjustment Payments made for Contract Size Rounding

The theoretical new contract size (TC) will be calculated to 4 decimal places and will be truncated using the TMC threshold so that if the theoretical new contract size falls between 100 and to up to but not including 102, the new contract size will be truncated to the standard 100.

The difference, due to truncation, between the theoretical contract size and the adjusted (new) contract size, will be cash adjusted using the ETO cash equalization adjustment payment formula detailed in the final notice.

For cash equalization payments for any contract size rounding, takers (buyer) will be credited and writers (sellers) will be debited. (Note, for share consolidations, it is possible for a LEPO taker (buyer) to be debited if the LEPO strike is adjusted back to 1 cent after initial rounding).

OTC series

Any OTC series cleared by ASXCL under the ASX Equity OTC Clear service will be adjusted using the same formula as the ETOs as shown in this Notice.

To maintain anonymity, the adjusted OTC series details will not be published in the Notice but will be available to clearing participants the following morning via their own clearing systems.

ETO exercise restrictions in relation to an adjustment may occur during the period of 10 business days prior to and including expiry and will also apply to OTC series. However such exercise restrictions will not apply on expiry day of an OTC.

What do I need to do by when?

Due to deferred settlement period and until the registry has completed the conversion, specific cover will not be acceptable. All specific cover will be converted to general on the night of the adjustment.

Specific cover will be available post consolidated period.

A further notice will be issued after close of trading, Friday 14 February 2025 which will list the adjusted series.

Need more information?

Issued by

Greg Fitzpatrick, Senior Manager, Clearing Operations

Contact information

Will Ward

clearing@asx.com.au