The Changdian warrants entered the exercise period from May 18 as Yangtze Power Guangfa Securities Co., Ltd., the recommendation institution for share reform, suggests investors to pay close attention to the risk warning information of Shanghai Stock Exchange, and also give answers to some common problems encountered by investors when exercising their rights:
1. When is the exercise period of the Changdian warrants?
The exercise period is 5 trading days from May 18, 2007 to May 24, 2007. Warrants that have not been exercised after the market closed on May 24, 2007 will be cancelled. Therefore, for the warrants with exercise value, the holders should pay close attention to the price changes of the positive shares during the exercise period and participate in the exercise in a timely manner.
2. How to calculate the exercise fee?
The investors who participate in the exercise shall also pay the exercise transfer fee, and the fee standard is shares 0.05% of the par value of the transfer, of which the par value of the stock is calculated at RMB 1 per share. The exercise ratio of the Changdian warrants is 1:1, so the exercise fee=the number of exercise shares × RMB 1 × 0.05%.
3. What are the reporting elements for the exercise of the Changdian warrants?
Changdian CWB1 Elements of exercise declaration of
Exercise code: 582007
Buying and selling direction: buying
Declared price: 5.35 yuan/share
4. What are the precautions for the application and exercise of Changdian CWB1 warrants?
Investors need to ensure that their capital account has enough cash to pay the exercise price and exercise fees when declaring the exercise. At the same time, the number of warrants declared shall not be greater than the number of warrants actually held.
5. What is the meaning of the cash sale of the Changdian warrants?
During the exercise period of the Changdian warrants, the holders of the listed and circulating warrants have the right to sell their Changdian warrants to China Three Gorges Project Development Corporation through the block trading system at a price of 1.8 yuan per share.
6. How should the repurchase of Changdian warrants be operated?
The cash resale of Changdian warrants is realized through the block trading system of Shanghai Stock Exchange. The sale time is 15:00 - 15:30 on each trading day during the exercise period of the Long term Power Warrant (May 18 to May 24, 2007). For details, please call the hotline 010-58688900.
7. Which is the priority when the resale and exercise are carried out at the same time?
The transfer record of realizing the cash sale back of the Changdian warrants through the block trading system on the same day takes precedence over the exercise declaration of investors on the same day.
Based on Thursday's closing price, Yangtze Power RMB 14.49 per share. If the investor chooses to exercise and purchase the shares of Yangtze Power, the theoretical earnings per share will be RMB 14.49-5.35=9.14. If the investor chooses to sell back in cash, each warrant can only get RMB 1.8 in cash, which is less than the earnings of the option exercise. Therefore, investors should carefully choose to sell back.
GF Securities, primary dealer of warrants
