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FAQ ON CMB'S 1.3 FOR 10 RIGHTS ISSUE | ||
| THE BELOW FAQ IS APPLICABLE TO CUSTOMERS WITH CMB SHARE HOLDINGS IN INVESTMENT/SECURITIES ACCOUNT WITH HSBC. | ||
| A. GENERAL INFORMATION ON CMB'S RIGHTS ISSUE ANNOUNCEMENT: | ||
| 1. | What is CMB's 1.3 for 10 rights issue about? | |
| This 1.3 for 10 rights issue means a CMB shareholder will be entitled to buy 1.3 new CMB Rights shares for every 10 CMB existing shares held, at a subscription price of HK$10.06 per share. | ||
| The entitlement to new shares will be determined by the shareholding of each shareholder (i.e. already settled shares) as at 4.30 pm on 9 March 2010. HSBC will send an Election Advice Letter to eligible customer shareholders from 9 March 2010, stating the total no. of new CMB shares the shareholder is entitled to. | ||
| Customer shareholders who wish to exercise their nil-paid rights must either | ||
| (i) | complete the Reply form enclosed with the Election Advice Letter and post it back and ensure it reaches HSBC no later than 17:00 on 25 Mar 2010, | |
| or | ||
| (ii) | submit instruction to HSBC through HSBC Personal Internet Banking on or before 23:59 on 25 Mar 2010 (HK time) | |
| In the event that customer shareholders do not receive an Election Advice Letter from HSBC, but are eligible for new shares under the rights issue, please approach any HSBC branch for assistance as soon as possible prior to 25 March 2010. | ||
| For details of the rights issue, please refer to the Circulars made available by HKEx: http://www.hkexnews.hk/listedco/listconews/sehk/20100302/LTN20100302031.pdf http://www.hkexnews.hk/listedco/listconews/sehk/20100314/LTN20100314027.pdf | ||
| 2. | What are the key dates and timetable of the right issue for HSBC customer holding CMB shares? | |
| 5 Mar - Last day to purchase CMB shares with rights entitlement | ||
| 8 Mar - Ex-rights day - No rights entitlement for any purchase of CMB shares on or after this date | ||
| 9 Mar - Last day for registration of CMB share with rights entitlement and Election advice with reply form sent to eligible customers. | ||
| 15 Mar evening (tentative) - Deposit rights into customer shareholders' investment account | ||
| 17 - 24 Mar - Rights can be traded on the Hong Kong Stock Exchange | ||
| 25 Mar 17:00 - Last day for submission of the original Instruction form to reach HSBC by mail or via branch | ||
| 25 Mar 23:59 - Last day for submission of instruction via HSBC Personal Internet Banking | ||
| 25 Mar 23:59 - Customer shareholders must have sufficient available funds in their default settlement account for exercising the rights by 23:59 on 25 Mar 2010. | ||
| By 8 Apr - | ||
| 1. | Excess application allotment result | |
| 2. | Refund unsuccessful excess application cost to customer's cash account | |
| 3. | Deposit CMB shares into customer's investment accounts | |
| 3. | Who is Qualifying H Shareholder? | |
| To qualify for the subscription of the H Rights Shares, an H Shareholder must be registered as a member of the Company at the close of business on the H Share Record Date and must not be a Non-Qualifying H Shareholder. | ||
| Shareholder should always carefully read the announcements, circulars and other documents issued by the listed company relating to the corporate action before submitting your instructions. | ||
| It is your sole responsibility to ensure that you are eligible to do so and that you have complied with the laws of the relevant jurisdictions(s) including obtaining any consents or making any filings or fulfilling such other formalities as required by such laws. We will not be responsible for verifying your compliance with the terms of the corporate event including your eligibility to participate. | ||
| 4. | Can I apply for any Excess Application? | |
| Yes, Excess application is available for this CMB Rights Issue. Application for excess CMB Rights Shares can be made only by Qualifying H Shareholders. Qualifying H Shareholders may apply excess H Rights Shares in respect of | ||
| 1. | any unsold entitlements of the Non-Qualifying H Shareholders, | |
| 2. | any unsold fractional entitlements to the H Rights Shares | |
| 3. | Nil Paid H Rights not taken up by Qualifying H Shareholders or otherwise not subscribed for by transferees of the Nil Paid H Rights. | |
| Note: Although HSBC acts on behalf of various individual clients, CMB considers HSBC to be a single shareholder and therefore allows us to lodge one excess application form only. In the event that the issue is over subscribed and allotments are scaled back, distributions of excess shares to applicants will be in such manner as decided by HSBC and may not necessarily be the same as those published by the company. | ||
| B. RIGHTS ENTITLEMENT: | ||
| 5. | I am a CMB shareholder. How many new shares am I entitled to? | |
| The number of shares you are entitled to will be determined by your CMB shareholding in your investment account at 4.30 pm on 9 Mar 2010. This 1.3 for 10 rights issue means an existing CMB shareholder will be entitled to buy 1.3 new CMB rights shares for every 10 CMB shares currently held. Entitlements to new CMB rights shares will be rounded down to the nearest whole number. | ||
| Example 1 | ||
| If you have 1500 CMB shares, the number of new shares you are entitled to receive is 195. | ||
| Formula: 1500 shares / 10 * 1.3 = 195 shares. | ||
| Example 2 | ||
| If you have 545 CMB shares, the number of shares you are entitled to receive is 70. | ||
| Formula: 545 shares / 10 * 1.3 = 70.85 shares. In this case, the number of shares to be received will be rounded down to 70. | ||
| 6. | When will the rights be deposited into my investment account? | |
| The rights are expected to be deposited into your account on 15 March 2010 evening (tentative). | ||
| 7. | I have been purchasing CMB shares through Stocks Monthly Investment Plan ("SMIP"). Will I be entitled to this rights issue? | |
| Yes, you are entitled to this rights issue. Your entitlement to new CMB rights shares will be calculated based on the numbers of CMB shares denoted in your investment account as at 9 March 2010. | ||
| 8. | How can I check my rights issue entitlement? | |
| You can check your rights issue entitlement through internet banking, phonebanking and branches of HSBC from the evening of 15 March 2010. | ||
| C. ACTIONS TO BE TAKEN BY CUSTOMER SHAREHOLDERS: | ||
| 9. | What do I have to do with the allotted rights? | |
| You can decide whether or not to exercise the allotted rights. | ||
| 1) | Exercise the rights allotted to you | |
| Indicate how many rights you wish to exercise (can be exercised in full or in part) and submit exercise instructions to HSBC via:- | ||
| i) HSBC Personal Internet Banking on or before 23:59 on 25 March 2010, or | ||
| ii) Completing the Reply form enclosed with the Election Advice Letter and ensure it reached HSBC no later than 17:00 on 25 March 2010 by:- | ||
| a) post (The postal address is printed on the Reply form) or; | ||
| b) visiting any of our branches to submit in person | ||
| In case you do not receive an Election Advice Letter from us but wish to exercise your rights, please visit any HSBC branch before 25 March 2010 for assistance. | ||
| Alternatively, you can submit your take-up instruction to us through HSBC Personal Internet Banking no later than 23:59 on 25 Mar 2010 | ||
| 2) | Sell the rights in the stock market | |
| If you decide not to exercise the rights allotted to you, you have an option to sell them in the stock market during the trading period from 17 March 2010 to 24 March 2010. Standard brokerage fees and government levies for stock trading apply. | ||
| 3) | Do nothing | |
| The rights offer will lapse if you do not submit any instruction before the submission deadline. Your lapsed rights will be made available by CMB for take up by other Qualifying H Shareholders by way of excess application. If you allow your rights entitlement to lapse, you will not receive any CMB shares or premium. | ||
| 10. | What account can I use to pay the settlement amount on exercise of my rights under the rights issue? | |
| The default settlement account of the investment account will be used to pay for the shares subscribed under the rights issue (account number printed on the attached reply form of election advice sent from 9 Mar 2010 to customers). Customer cannot specify another account. | ||
| 11. | When do I need to deposit sufficient funds into my default settlement account for purchasing new shares? | |
| Customers must ensure sufficient available funds are deposited into the default settlement account (account number printed on the attached reply form of election advice sent from 9 Mar 2010 to customers) by 23:59 on 25 March 2010. | ||
| 12. | If I purchase more rights on the market, what action should I take? | |
| You should proactively obtain an election form from HSBC and give your exercise instruction to HSBC. | ||
