Can someone explain what the following means to a small shareholder like me? Are they basically
Giving me 5 notes at 20p each and paying 8% on them in return for 2 of my shares. I have
the ability to buy and sell these notes on the open market and take my shares back in
2004 or 2005 for the same 5 for 2 ratio?
Is my thinking correct? What are the disadvantages/advantages of taking up this offer
and is it separate from the usual 1 for 10 share split?
Cheers for your help.
As announced by the Chairman on 14 March 2003 in his statement accompanying
the preliminary results for the year ended 31 December 2002, Guinness Peat
Group plc ("GPG") intends to make an off market tender offer to repurchaseup to 10 per cent. of each shareholder's ordinary shares on the basis of
five 8% convertible subordinated unsecured loan notes of 20 pence each to
be issued by GPG (UK) Holdings plc ("GPGUK"), (the "Further CLNs") forevery two ordinary shares bought back (the "Buyback Offer"). The Further
CLNs will rank pari passu, and will be fully fungible, with the existing
CLNs of GPGUK with their principal repayable in two equal annual
instalments with the option to convert back to ordinary shares in the
capital of GPG on 30 June 2004 and 2005.
