today is the last day to gain rights
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today is the last day to gain rights
To my mind NTL has no moral right and maybe no legal right to undertake a 3 for one issue at .005 cents without taking into account the effect this will have on their options NLTOA. When undertaking a rights issue any company must take into account all securities so that no security is unduly advantaged or disadvantaged. In this case NTLOA is effectively wiped out.
I believed this action is not in the best long term interest of the company or in fact any company.It is in the care and responsibility of directors to always built trust in their investors. While I have only about 10% of my holding in NTL in its options I feel in this regard NTL has stabbed the NTLOA holders in the back.
NTL should restore the same perscentage value in its options that were there before the recent very large capital raisings,if for no other reason than a future exists and the company needs to keep faith with all its equity holders.
My suggestion given the size of this rights issue is that the company extend the life of the options from november /2017 to november 2021 and leave the exercise price at 2cents.
I have not yet talked the M Hill about this but will if other of you options holders feel as I do
Comments please.
Not following this one closely but normally would you not change the terms of the options (via a complex mathematical formula) so that the effect is the same as before the issue of the rights? That would be equitable.
You might even be able to see if they are breaching the Companies Act but issuing such a huge rights issue and deeply discounted without considering option holders. But option holders are not "equity" holders so I do not know if they have any say. Maybe worth pursuing?
If not getting in touch with company would be the best way forward.
I would like to see long term holders get the option to buy shortfall shares before any other group. The capital raise does not mention the plan for any shortfall shares should the capital not be raised (suspicious). And this is where I think Amer may be involved. Able to scoop up a "significant investment" in NTL for cheap as chips without even having to make a formal takeover offer - cause that would have seen the SP skyrocket.
" The Offer will also include a shortfall facility that will provide eligible shareholders the opportunity to also request additional shares in excess of their pro-rata entitlement.To be an eligible shareholder, you must, as at 7.00pm (NZT) on the Record Date: "I would have thought those who wanted more have that option already.
Is this one of the more promising penny dreadfuls on the NZX? Or is it expected to just go through the process of raising funds --> flounder --> rot
Except that only a small percentage of the company has traded at 0.7. Always hard to know and will come down to how many want to take up their entitlement. I personally will probably sell a few rights so that I can utilise the balance due to cashflow. But I won't give them away.
I thought the announcement was handled appallingly by the company. It should have been made clear from the outset that rights would be tradeable. They should also have made known some of the strategic thinking about going down this route.
That aside the future looks extremely rosy and I will be taking up all the rights I can afford.
0.1 I think you got that wrong but we will see soon enough.
At the risk of repeating myself, that is based on the tiny percentage of the company that traded at those prices post the poorly managed announcement. The value of the rights as of now is the premium above 0.5 that you have to pay to get a slice. We are presuming Amer will snap up any shortfall.
Some may also sell their original shares to make the profit on the gap. Always very messy until its over as there are so many permutations.