MAY 11, 2017
NATIONAL GRID PLC – ANTICIPATED SHARE CONSOLIDATION/SPECIAL CASH DISTRIBUTION FUTURES SYMBOL: NGG1D NEW SYMBOL: NGG2D DATE: 5/22/17???
National Grid plc (NGG) has announced a Share Consolidation and Special Cash Dividend whereby each NGG American Depositary Share will be converted into the right to receive approximately 0.916667 (New) National Grid plc (NGG) American Depositary Shares (ADS) plus $5.4074 ($5.4224 - $0.015 ADS cancellation fee) per NGG ADS. The Share Consolidation is subject to shareholder approval on May 19, 2017. Cash will be paid in lieu of fractional shares resulting from the share consolidation. The Share Consolidation is anticipated to become effective before the market open on May 22, 2017 and is in conjunction with payment of the Special Cash Dividend. CONTRACT ADJUSTMENT Pursuant to Article XII, Section 3, of OCC's By-Laws, all NGG1D Security Futures will be adjusted as follows: Effective Date:
May 22, 2017???
NGG1D changes to NGG2D
100 (e.g., for premium or strike dollar extensions 1.00 will equal $100)
New Deliverable Per Contract:
1) 91 (New) National Grid plc (NGG) American Depositary Shares 2) Cash in lieu of approximately 0.6667 fractional NGG Share 3) $540.74 Cash ($5.4074 x 100) NGG (New): 636274409
PRICING Until the cash in lieu amount is determined, the underlying price for NGG2D will be determined as follows: NGG2D = 0.916667 (NGG) + 5.4074 DELAYED SETTLEMENT
The NGG component of the NGG2D deliverable will settle through National Securities Clearing Corporation (NSCC). OCC will delay settlement of the cash portion of the NGG2D deliverable until the cash in lieu of fractional NGG Share is determined. Upon determination of the cash in lieu amount, OCC will require delivery of the appropriate cash amount.
DISCLAIMER This Information Memo provides an unofficial summary of the terms of corporate events affecting listed options or futures prepared for the convenience of market participants. OCC accepts no responsibility for the accuracy or completeness of the summary, particularly for information which may be relevant to investment decisions. Option or futures investors should independently ascertain and evaluate all information concerning this corporate event(s). The determination to adjust options and the nature of any adjustment is made by a panel of The OCC Securities Committee pursuant to OCC By-Laws, Article VI, Sections 11 and 11A. The adjustment panel is comprised of representatives from OCC and each exchange which trades the affected option. The determination to adjust futures and the nature of any adjustment is made by OCC pursuant to OCC ByLaws, Article XII, Sections 3, 25, or 25A, as applicable. For both options and futures, each adjustment decision is made on a case by case basis. Adjustment decisions are based on information available at the time and are subject to change as additional information becomes available or if there are material changes to the terms of the corporate event(s) occasioning the adjustment. ALL CLEARING MEMBERS ARE REQUESTED TO IMMEDIATELY ADVISE ALL BRANCH OFFICES AND CORRESPONDENTS ON THE ABOVE. For questions regarding this memo, call Investor Services at 1-888-678-4667 or email [email protected]
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