Selling Rights Issue

Hi,

Following VHP announcement of renounceable rights offer,
if you do not wish to take up the offer of buying the new shares how
do you go about selling the rights?


This is the first time I have come across this, and would appreciate any advice.

Thanks

Also, what if happens if you just let them lapse, does the company sell them when and you receive the profit if any
from the proceeds?.

Thanks

You need to sell through a broker, unless the company offers a sale facility - not a usual feature but occurs sometimes. Read the small print in the offer doc when it issues.
Check what brokerage you would be charged - if only a small number of rights it may be better to take them up, or even to lapse, if the amount is really small.
:)

Quote:

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Originally Posted by Stylerz

Also, what if happens if you just let them lapse, does the company sell them when and you receive the profit if any
from the proceeds?.

Thanks

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If they lapse then the underwriter will take them up. Nothing in it for you as your "right" will have lapsed.

Hi,

Just an update that I was able to sell the rights myself through ASB securities, just the same as you would sell any shares.
A new facility 'VHPRC' appeared for a couple of weeks.

A lot better than just letting them lapse, if anybody comes across this situation in the future.