(French Financial Markets Authority (Autorité des Marchés Financiers or AMF) press release dated 13 September 2012)
Since 1st of October 2012, cash-settled derivatives are taken into consideration in calculating thresholds. Cash-settled derivatives refer to financial agreements or instruments which are exclusively settled in cash and which have for their beneficiary a similar economic effect to holding the underlying shares, such as equity swaps, contracts-for-difference (CFD) or cash-settled call options.
This provision was introduced by Article 25 of the 22 March 2012 Act entered into force at that date modifying inter alia Articles L. 233-7 and L. 233-9 of the French Commercial Code.
As a result, investors are now required, for any position existing on 1st of October2012, to aggregate shareholdings and voting rights associated with cash-settled derivatives and equivalent agreements for calculations relating to the notification of major holdings.
A new version of the threshold crossing notice form has been made available online on the AMF’s website.