What JSE directors’ dealings announcements tell shareholders

Why both events appeared in one Mr Price notice

The company disclosed off-market delivery of 171,000 vested shares and an on-market sale of 141,000 of them on the same date. The notice gives the deemed delivery price and the volume-weighted sale price separately. It also records the 30,000 shares retained. Source 4

A value can be reported even when the price is nil

iOCO reported a deemed value of R12.03 million for accepting 2.772 million conditional shares. The announced price per share was nil. The deemed value used the 4 May closing price, while whether the shares would vest depended on meeting performance conditions. Source 3

Conditional value and deemed value have different labels

For some Sanlam entries the notice gives nil as the deemed transaction value and then states a conditional amount based on a quoted closing price. The scheduled release dates and their conditions explain the distinction. A comparison that treats the conditional amount as cash received would misread the disclosure. Source 2

The JSE specifies what a notice has to identify

Paragraph 6.78 covers the person and capacity, the interest, the nature and date of the dealing, how it was executed, and the price, quantity, value and class of security. Where relevant it also calls for option terms and clearance information. The rule covers off-market dealings as well as exchange trades. Source 1

Two clocks govern reporting

Under paragraph 6.80, a director must provide the information to the issuer without delay and within three business days after dealing. The issuer then has a separate deadline of 24 hours from receipt, also subject to the duty to act without delay. The public transaction and announcement dates alone do not establish when the issuer received the information. Source 1