Ann: Bonus Issue of Options to Shareholders, page-5

"Each Option will provide shareholders with the right, but not the
requirement, to purchase one Magellan share at an exercise price of $35.00 per Option, expiring
on 16 April 2027."

Options are simple. Its like a place holder on some shares at a locked in price. so if say MFG went to $50 a share, you still have the "option" to execute the option into shares for $35 each at the limit of 1/8th of your holdings from the announcement; thus making $15 profit per share if you sold them instantly.

Often this can block the share price up at the $35 mark, as 1/8th of the current market start offloading their options.