The assimilation event is defined as the assimilation of a certain group or category of shares into another one. It doesn’t necessarily mean a different type. The assimilation may happen following several events such as (Rights issue or Further Public Offering)
Assimilation of the same share types
So you could have the same type and category of shares,(Ordinary shares ISIN FR00012515) being issued following a capital increase or Rights issue. These new shares gets assimilated to the old existing shares.
Assimilation of Different share types
Another example would be a certain category of shares getting assimilated to another.
In the world of corporate actions, you may hear people saying non-pari passo shares. This means a certain category of shares that has certain characteristics that makes it different than the ordinary ones. One of the best examples is the “Partially paid shares”.
Partially paid shares
The partially paid shares are a “Non-pari passu” shares, that were not fully paid by the investor the day they purchased them.
What happens is the company will decide to issue a certain number of shares but only take a portion of the money from the investors. These shares would get listed under a different ISIN code, Label and symbol. They have dividend right attached to them, but of course not the full amount. For example: if you paid 50% of he share price when the shares were issued, you get 50% of the dividend amount.
The assimilation here happens after the shares gets fully paid.
Non consolidated to consolidated shares
Another example could be a certain group of shares that were not consolidated during a consolidation corporate action event. So when the shares gets consolidated they would then “Join” or “gets assimilated to the normal ordinary shares of the company”
Keep in mind that you can have assimilation for several reasons, but the principle is always the same.
The critical fields in this event are:
- Reason for the assimilation
- Shares to be assimilated listing details
- Target shares to be assimilated to
- Number of shares to be assimilated
- The shares outstanding, or the number of shares for the receiving category after the assimilation
- Assimilation date