Cofinimmo was officially informed today by Euronext that the selection rules of the BEL20 index are refined. The previously announced criteria, threatening Cofinimmo from exclusion, are replaced by new dispositions to which Cofinimmo currently fully complies. Cofinimmo herewith strengthens its position as only property share in the BEL20.
On 20.12.2004 Euronext announced changes to its range of indices on Euronext Brussels. Not meeting the free-float market capitalization criteria of 1.5 billion, Cofinimmo was among the 5 companies threatened by an exclusion from the BEL20. Considering the concerns of a number of companies as to the timeframe for implementation of these measures, the BEL20 Steering Committee announced on 24.12.2004 a series of temporary provisions giving the 5 companies a 2-year extension to meet the new criteria.
Euronext announced yesterday that new rules will replace the measures announced as per 20.12.2004 and 24.12.2004. According to the new rules, the minimum free-float market capitalization criteria to remain in the index will be equal to the level of the BEL20 index at the review date, multiplied by 200,000 (i.e. 0.6 billion based on the current index level).
Cofinimmo currently has a free-float market capitalization of its ordinary shares (1.04 billion) above the foreseen threshold and is fully compliant with the other eligibility criteria of the BEL20.
Cofinimmo is very pleased with the announced measures as its inclusion in the BEL20 in 2003 marked the culmination of its efforts to enhance the profile and liquidity of the Cofinimmo share. Furthermore, this development also reflects the growing importance of the property investment market in Belgium and its appeal as part of any diversified investment portfolio.
Cofinimmo's annual velocity exceeds 46% with an average daily trading volume of 16,700 shares, i.e. 6 times more than its volume of 1999. With a free float amounting to 77% and a free-float market capitalization of its ordinary shares of 1.01 billion, Cofinimmo was in the 15th position in the BEL20 based on the latest reserve ist of 31.07.2005. Next to the ordinary shares (used by Euronext for the computation of the reserve list), Cofinimmo has issued 2 series of preferred shares which are convertible into ordinary shares as from 2009. The total market capitalization of the 3 lines of equity currently represents 1.5 billion.