Forum Archive Index - May 2001

[Derek <dkw@paradise.net.nz>]

Hi Shiner,

RIGHT: SEL:   RIGHTS TO NEW ORDINARY SHARES & OPTIONSSelector Group advised
of a Renounceable Rights issue to subscribe for newordinary shares and
options.  Ratio:  2 for 1.  Number of Securities to beissued following
event:  61,245,400 rights (each exercisable into oneordinary share and one
option.  Explanation of the Ranking:  The rights andoptions carry no voting
/ dividend rights and will not rank on liquidation ofthe company.  The
ordinary shares issued on exercise of the rights andoptions will rank pari
passu with the existing ordinary shares.  Amount persecurity:  $0.04 -
payable for each new ordinary shares.  The options will beissued at no
cost.  Record Date:  18/05/2001.  Application Date:  15/06/2001. Notice
Date:  21/05/2001.  Allotment Date:  Within 5 business days after15/06/2001
for the new ordinary shares and options


2 for 1 means that if you want to you can buy another 2 shares for each
share that you have (for 4c each, i.e. 8c for each share that you have).
(i.e. up to 80000). For each right that you take up you will get one option
for free.

Usually investors are put in a no-win situation with Rights issues, if you
don't take them up then your holding gets diluted. If you take them up then
you're putting more money into a particular share than you originally
intended. In general I would say that if you have confidence in the company
and can afford it then it is better to take them up. You can then look to
reduce your holding further down the track when (or if) the share price
recovers. 

Given the share price of Sel, you are very unlikely to get much money for
the rights at all if you sell them (but of course that is still better than
letting them lapse).

The underwriting of a large portion of the rights in Sel gives more
confidence in the share, but apart from my general comments of rights
issues, I can't recommend one course of action or another to you with Sel.

Rgds,
Derek

disc. don't own Sel













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