Forum Archive Index - May 2001

["John Wright (Shiner)" <jcwright@ihug.co.nz>]

Thank you,
Have to admit, I'm still thinking(as there is no great rush). Appreciate you
candor.

Shiner
----- Original Message -----
From: Derek <dkw@paradise.net.nz>
To: <sharechat@sharechat.co.nz>
Sent: Saturday, May 19, 2001 9:43 AM
Subject: Re: [sharechat] Looking for advice regarding SEL rights and options


> 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
> X-te:  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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