corporate actions, list of events, types, stock split, tender offer

8/13/2019 Corporate Actions, List of Events, Types, Stock Split, Tender Offer

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A list of Corporate Actions Events / Corporate Actions Types

EQUITIES:

Mandatory Events

AssimilationAbsorption of a new issue of stock into the parent security where the original sharesdid not fully rank pari passu with the parent shares. After the event, theassimilated shares rank pari passu with the parent. Also referred to as funging ofshares. ...assimilation...

AcquisitionA company adopting a growth strategy, can use several means in order to seizecontrol of other companies. ...Acquisition...

BankruptcyThe company announces bankruptcy protection and the legal proceedings start inwhich it will be decided what pay-outs will be paid to stakeholders. ...bankruptcy...

Bonus IssueShareholders are awarded additional securities (shares, rights or warrants) free ofpayment.The nominal value of shares does not change. ...bonus issue...

Bonus RightsDistribution of rights which provide existing shareholders the privilege to subscribeto additional shares at a discounted rate. This corporate action has similar featuresto a bonus and rights issue.

Cash DividendThe company pays out a cash amount to distribute its profits to shareholders. ...cashdividend...

Class ActionA lawsuit is being made against the company (usually by a large group ofshareholders or by a representative person or organisation) that may result in apayment to the shareholders

DelistingThe company announces that i t securities will no longer be listed on a stockexchange and that they will be booked out. ...delisting...

De-mergerOne company de-merges itself into 2 or more companies. The shares of the oldcompany are booked out and the shares of the new companies will be booked inaccording to a set ratio.

General AnnouncementAn event used by the company to notify its shareholders of any events that takeplace. This event type is used to communicate several types of information to theshareholders.

Initial Public Offering (IPO) This is the first corporate actions event in the history of any company. The first time

that a company gets listed on a stock exchange is regarded as an event in itself.Underwriters will try to get as many buyers for the newly listed shares for a price ashigh as possible. Any shares they can not sel l, will be bought by the underwriters.

LiquidationLiquidation proceedings consist of a distribution of cash and/or assets. Debt may be paid in order of priority based onpreferred claims to assets specified by the security e.g. ordinary shares versus preferred shares.

Mandatory Exchange / Mandatory ConversionConversion of securities (generally convertible bonds or preferred shares) into a set number of other forms of securities(usually common shares).

Merger

Mer er of 2 or more com anies into one new com an . The shares of the old com anies are consequentl exchan ed into

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shares in the new company according to a set ratio.

Name ChangeName changes are normally proposed and approved at the Company s General meeting. This has no effect on the capitaland shareholders of the company. ...name change...

Par Value ChangeSimilar to stock splits where the share nominal value is changed which normally results in a change in the number ofshares held.

Scheme of ArrangementOccurs when a parent company takes over its subsidiaries and distributes proceedsto its shareholders.

Scrip DividendThe UK version of an optional dividend. No stock dividends / coupons are issued but the shareholder can elect to receiveeither cash or new shares based on the ratio or by the net dividend divided by the re-investment price. The default isalways cash.

Scrip IssueShareholders are awarded additional securities (shares, rights or warrants) free of payment. The nominal value of sharesdoes not change

Spin-offA distribution of subsidiary stock to the shareholders of the parent corporation without having cost to the shareholder ofthe parent issue. ...spin-off...

Stock DividendAlmost identical to bonus issues where additional shares in either the same or different stock is issued to shareholders ofthe underlying stock. ...stock dividend...

Stock SplitA stock split is a division of the company shares into X number of new shares with a nominal value of 1/X of the originalshare. For example a BMW 2 for 1 stock split, where a BMW share par value decreases to EUR 0.50 from EUR 1.00,whilst the number of share doubles. The total value of the outstanding shares remains the same. ...stock split...

Other EventAny event that does not fit any of the other descriptions.

Return of CapitalA cash amount will be paid to investors in combination with a nominal value changeof the shares. ...return of capital...

Reverse Stock SplitThe number of outstanding shares of the company gets reduced by an X numberwhile the nominal value of the shares increases by X. For example a BMW' 1 for 2reverse stock split, where the BMW shares nominal value increases from EUR 0.50to EUR 1.00. The total value of the outstanding shares remains the same. ...reversesplit...

For more detailed info on reverse split check: www.reverse-split.com.

Mandatory Events with Options

Cash Stock Option Shareholders are offered the choice to receive the dividend in cash or in additional

new shares of the company (at a discount to market). Reinvesting often carries atax shield.

Merger with ElectionsMerger of 2 or more companies into one new company. The shares of the old companies are consequently exchanged intoshares in the new company according to a set ratio. Shareholders of both companies are offered choices regarding thesecurities they receive

Spin-off with electionsA distribution of subsidiary stock to the shareholders of the parent corporation without having cost to the shareholder ofthe parent issue whereby the shareholders are offered choices regarding the resultant stock.

Voluntary Events

AGM / EGM proxy voting on shareholders meetingsEvery publicly traded company has an annual general meeting where managementpresents several decisions that need shareholder approval. The approval is given bymeans of voting for or against each decision. Shareholders may attend the meetingin person or vote by proxy - electronically or by mail via their brokers andcustodian. ...proxy voting...

Buy-back program (BIDS) / Repurchase OfferOffer by the issuing company to existing shareholders to repurchase the companysown shares or other securities convertible into shares. This results in a reduction in

the number of outstanding shares

Dividend Reinvestment Plan (DRIP)Similar to cash stock option. In this case however, the company first pays the cashdividend after which shareholders are offered the possibility to reinvest the cashdividend in new shares.


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option in order to sell the underlying security at a given price.

Warrant ExerciseAn event in which the holder of the warrants has the option to exercise the warrantin accordance with the terms and conditions of the warrant.

Warrant ExpiryAn event that notif ies the holder of the warrant that the warrant is about to expireand the holder of the warrant is given the option to exercise the warrant.

Warrant IssuePer share an amount of warrants is issued according to a specific ratio. The warrantcan entitle to sell or buy the underlying security at a given price within a given

timeframe.

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