Due to reorganization Seadrill has announced a mandatory exchange offer to its shareholders, whereby every one (1) Seadrill share held (ISIN BMG7945E1057) entitles their holder to 0.0037345 new Seadrill common shares (ISIN: BMG7998G1069). As the new common share is traded only on New York Stock Exchange (NYSE) the underlying share price was calculated using the VWAP1 on NYSE in $ adjusted by USD/NOK FX rate and offer ratio. VWAP1 and FX rate was used from July 24, 2018.
In addition, as the physical delivery in Seadrill share is not possible, the settlement type was changed to cash settlement.
Due to above, NASDAQ has received permission from the Stock ombudsman to use the adjusted NYSE VWAP as underlying price in the fair value recalculation. Members are encouraged to ensure that clients are aware of the adjustments.
NASDAQ Derivatives Markets has (1) set a new expiration day for option, future and forward contracts in Seadrill (SDRL) and (2) settled the contracts at fair value according to the attached.
