Announcement by Fortis regarding call option on BNP Paribas shares
(Thomson Reuters ONE) - Under an agreement between Fortis, BNP Paribas and the SociétéFédérale de Participations et d'Investissement/Federale Participatie-en Investeringsmaatschappij (SFPI/FPIM) concluded on 12 May 2009,Fortis is the holder of a cash-settled call option written by theSFPI/FPIM that allows Fortis to benefit from an appreciation in thevalue of the BNP Paribas shares held by the SFPI/FPIM for a period ofeight years.The option entitles Fortis to the difference between the strike priceand the market price of BNP Paribas shares at the time the option isexercised or the selling price of the underlying shares if theSFPI/FPIM opts to sell them. The option replaces the so-called'Coupon 42' arrangement, a compensation mechanism benefiting certainFortis shareholders that was proposed by the Belgian State.The SFPI/FPIM and Fortis appointed Petercam as the independentcalculation agent for the call option. The agent is responsible formaking value calculations in the event of exceptional circumstances,e.g. super dividends, mergers and takeovers, and particularly shareissues.Subsequent to BNP Paribas's recent rights issue with preemptiverights on 13 October 2009, the calculation agent has recomputed thestrike price of the call option and has reduced it from EUR 68.00 toEUR 66.672.[1]Fortis (www.fortis.com), with insurance as its core business, employsover 10,000 people in Belgium and elsewhere. Its four key markets areBelgium, the United Kingdom, Continental Europe and Asia. Fortis's75%-owned subsidiary AG Insurance is the undisputed leader of thedomestic Belgian market for Individual Life and Employee Benefits andis also one of the top players in Non-Life. Outside Belgium, FortisInsurance International, a wholly owned Fortis subsidiary, operatesin the other three markets through its own network, joint venturesand local partnerships. Fortis is set to become the second largestmotor insurer in the UK and it utilising its knowhow to form highvalue-added alliances in Asia. In 2008, 54% of Fortis's insurancerevenues were generated in Belgium and 46% in the other threemarkets.Fortis holds a 45% stake in Royal Park Investments, an entity thatincorporates a structured credit portfolio, and is also the soleowner of several financial vehicles, whose assets and liabilities itmanages.Fortis is listed on Euronext (Brussels - Amsterdam).Press contacts:Brussels: +32 (0)2 565 2266Investor Relations:Brussels: +32 (0)2 565 5378 Utrecht: +31 (0)30 226 6566[1] As previously mentioned, the call option is not standard anddiffers from the ISDA market standard. In the event of a share issue,the strike price of an ISDA standard option is reduced by a certainfactor and the number of options is increased by a factor. It hasbeen agreed to adjust only the strike price of the Fortis-held calloption, depending on the value of the preemptive rights sold orexercised by SFPI/FPIM.http://hugin.info/134212/R/1354682/328570.pdfThis announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 12.11.2009 - 17:31 Uhr
Sprache: Deutsch
News-ID 8323
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