FTSE Practice Note: UK Open Offers

14 December 2011

As a result of the June 2011 User Consultation and specifically on the treatment of UK Open Offers, please note the following changes with effect from 1st January 2012:

Current Treatment

FTSEs current treatment is to await the results of an open offer entitlement (i.e. after the offer closing date) and then increase the index weighting reflecting the new shares that have subsequently listed. The new shares are included at the prevailing market price (i.e. there is no adjustment to price on the ex entitlement date in the index).

New Treatment

FTSE will apply an adjustment at close on the ex entitlement date to reflect the new number of shares offered to existing shareholders only. The new shares will be added to the index weighting at the offer price. Therefore the effective adjustment will be applied on a T+1 basis.

FTSE will issue an intra-day notice to advise the pending index adjustment.

Please Note: In the event an open offer entitlement is announced by an issuer at least one clear business day ahead of the ex entitlement date, then the index adjustment will be applied effective on the ex date.

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