Forum Archive Index - October 2000

[a.slinko@auckland.ac.nz (Arkadii Slinko)]

Can someone explain this in plain English, please. I understand that there
will be no trading in rights. Am I correct? And what does it mean that they
will rank in priority (as to the amount of their issue price of NZ$0.25 per
share)? Will they be 25c cheaper?

AS

FLC
12/10/2000
RIGHT

REL: 1640 HRS Fletcher Challenge Limited

RIGHT: FFS: DETAILS OF PROPOSED FLETCHER FORESTS RIGHTS ISSUE

Fletcher Challenge Limited today released further details of the proposed
Fletcher Challenge Forests rights issue.  The proposed rights issue will be
voted on by shareholders at the Annual Shareholders' Meeting on 02/11/ 2000
(an ordinary resolution voted on by all shareholders)._
_
The terms of the issue are:_
* Fletcher Challenge Forests Shareholders will receive an entitlement to
subscribe for two Fletcher Challenge Forests Preference Shares for every
existing Fletcher Challenge Forests Share._
* The rights will  be renounceable._
* The issue price of $0.25 per Fletcher Challenge Forests Preference Share
will be payable on application._
* The Fletcher Challenge Forests Preference Shares will be issued within five
trading days of the close of the offer._
* The Fletcher Challenge Forests Preference Shares will, upon payment for
these shares, have the same rights (including as to voting and dividend
entitlements) as existing Fletcher Challenge Forests Shares, except that they
will rank in priority (as to the amount of their issue price of NZ$0.25 per
share) to the existing Fletcher Challenge Forests Shares.  The existing
Fletcher Challenge Forests shares will be entitled to the next NZ$0.25 per
share on liquidation and thereafter, the existing Forests Shares and the new
Forests Preference Shares will share equally on liquidation._
* The Fletcher Challenge Forests Preference Shares will automatically convert
( on a one-for-one basis at no cost) into Fletcher Challenge Forests Shares
on the fifth anniversary of their issue._
End
End CA:00060445 For:FLC    Type:RIGHT      Time:2000-10-12:16:40:31 Encrypt:Y


Dr. Arkadii Slinko
Department of Mathematics
The University of Auckland
Private Bag 92019
Auckland
NEW ZEALAND

Tel. 64-9-3737599 ext. 5749
Fax. 64-9-3737457
Homepage: http://www.math.auckland.ac.nz/~slinko




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