HomeChina Stock News China Southern’s equity reform scheme got nod from shareholders
China Southern’s equity reform scheme got nod from shareholders
Written by Administrator
Friday, 25 May 2007
BEIJING, May 18 (InfoChina) – China Southern’s (NYSE: ZNH, HK: 1055, SH: 600029) scheme for split share structure reform in the yuan-dominated A-share market was voted for by 88.56 percent of shareholders on May 17, the company said in a statement on May 18.
Under the final scheme, its controlling shareholder will offer 14 put warrants for every 10 shares of the holders of currently tradable A-shares quoted on the Shanghai bourse, meaning that the holders of currently tradable A-shares will get a compensation of 1.579 shares for every 10 shares in exchange for the right of negotiation of the shares held by China Southern Airline Groups, the sole holder of currently non-tradable shares.
The initial exercise price of the warrants is set at 7.43 yuan, due in 12 months. The put warrants will be exercised based on the European Style, with exercise ratio of 2:1.
China Southern’s initial equity reform scheme proposed on April 16 just offered five put warrants for every 10 shares. It was later revised. (Edited by Lin Fanjing,
)
China Stock News 
