15 April 2014
Practice Group(s):
Energy, Infrastructure
and Resources
Corporate and
Transactional
ASX's Recent Changes: Rights Issue, Dividend
and Distribution Timetables
By Su Sze Ting and Adam Levine
From 14 April 2014, the Australia Securities Exchange (ASX) introduced changes to
timetables for rights issue, dividend and distribution reinvestment plans and other
corporate actions.
The changes are part of ASX's drive to improve the efficiency and flexibility of its capital
raising mechanisms and further reinforce ASX's stated commitment to strengthen the
equity capital markets in Australia.
When Will the Changes Take Effect?
The changes will take effect as follows:
• record dates on or before 17 April 2014 will follow the old timetable
• record dates on or after 22 April 2014 (ex-date 16 April) will follow the new timetable.
Accordingly, any corporate action announced before Monday, 14 April 2014, that has an
ex-date on or after 16 April 2014 will be subject to the new timetable.
What Are the Changes?
New Rights Issue Timetable
ASX's changes to the rights issue timetable depart slightly from those proposed by ASX
in July 2012 as the timetable allows more time between the closing date of acceptances
and issue date.
The changes to the rights issue timetable are summarised below:
Step
Current timetable
Timetable
Announcement date to exdate
2 business days
(day 0 to day 1)
2 business days
(day 0 to day 1)
Ex-date to and including
record date
5 business days
(day 2 to day 6)
3 business days
(day 2 to day 4 – reduced
by 2 days)
Trading period for
renounced rights
(renounceable offer only)
14 business days
(day 2 to day 15)
8 business days
(day 2 to day 9 – reduced
by 6 days)
Day after record date to
and including date that
documents are sent to
holders
4 business days
(day 7 to day 10)
3 business days
(day 5 to day 7 – reduced
by 1 day)
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ASX's Recent Changes: Rights Issue, Dividend and Distribution Timetables
Step
Current timetable
Timetable
Day after documents are
sent to holders to and
including acceptances
close date
10 business days
(day 11 to day 20)
7 business days
(day 8 to day 14 – reduced
by 3 days)
Day after acceptances
close date to and including
issue date
6 business days
(day 21 to day 26)
5 business days
(day 15 to day 19 - reduced
by 1 day)
Total timetable (not
including trading period
for renounced rights)
Business day 0 to 26
Business day 0 to 19
Shortened Ex-period
ASX is also shortening the ex-period (from five to three business days) for dividends and
distributions, interest payments, rights issues (including renounceable, non-renounceable
and accelerated), bonus issues, return of capital, buy-packs and reconstructions.
The reduction in the ex-period does not apply to calls, conversions or expiries.
Accelerated Rights Issues
A standard timetable has also been introduced for the following accelerated rights issues:
• accelerated non-renounceable entitlement offers (ANREO)
• accelerated renounceable entitlement offers (AREO) and simultaneous accelerated
renounceable entitlement offers (SAREO)
• accelerated renounceable entitlement offers with retail rights trading (AREORT).
These changes are summarised in the following table:
Step
ANREO
AREO and SAREO
AREORT
Announcement date
to record date
4 business days
(day 0 to day 3)
4 business days
(0 to day 3)
4 business days
(day 0 to day 3)
Period for retail
trading of renounced
rights
7 business days
(day 3 to day 9)
Day after record date
to and including date
that documents are
sent to holders
3 business days
(day 4 to day 6)
3 business days
(day 4 to day 6)
4 business days
(day 4 to day 7)
Day after documents
are sent to holders to
and including
acceptances close
date
7 business days
(day 7 to day 13)
7 business days
(day 7 to day 13)
7 business days
(day 8 to day 14)
Day after
acceptances close
date to and including
issue date
5 business days
(day 14 to day 18)
8 business days
(day 14 to day 21)
8 business days
(day 15 to day 22)
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ASX's Recent Changes: Rights Issue, Dividend and Distribution Timetables
Step
ANREO
AREO and SAREO
AREORT
Total timetable (not
including trading
period for
renounced rights)
Business day 0 to
18
Business day 0 to
21
Business day 0 to
22
Timetables for Dividends and Distributions
ASX is also amending the timetable for dividends and distributions contained in Appendix
6A of the Listing Rules. The amendment will introduce the requirement that the last
election date for a dividend reinvestment plan be no earlier than the business day
following the record date for the dividend.
Online forms for announcing certain corporate actions
ASX is also looking to implement its new online system after 30 June 2014 (with listed
companies having automatic access to the system). Under the new system, online forms
will enable companies to advise the market of dividends or distributions, interest
payments, cash capital returns, security spills and consolidations.
Once the online form is submitted, the facility will automatically produce an
announcement. Companies will have the opportunity to preview the announcement
before releasing it to the market. After the system's implementation date, which at this
stage has not yet been confirmed, there will be an initial grace period of six months after
which the use of the forms will become mandatory.
Here to Assist
If you have any queries about the above changes, please contact us, we would be happy
to assist.
Authors:
Su Sze Ting
susze.ting@klgates.com
+61.8.9216.0905
Adam Levine
adam.levine@klgates.com
+61.8.9216.0965
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ASX's Recent Changes: Rights Issue, Dividend and Distribution Timetables
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