vendor rights issue

vendor rights issue
An alternative to a vendor placing with open offer. A hybrid structure, which is complicated and unusual, involving the clawback to shareholders being made on provisional allotment letters rather than application forms. The advantage for shareholders is that they may be able to realise value without having to subscribe for and then sell the shares.

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

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  • rights issue — an issuing of extra shares. A company may raise additional capital from its members as opposed to from the public at large by issuing extra shares; this is called a rights issue. See pre emption; pre emption clause. Collins dictionary of law. W.… …   Law dictionary

  • rights issue — A method by which listed companies on a stock exchange raise new capital, in exchange for new shares. The name arises from the principle of pre emption rights, according to which existing shareholders must be offered the new shares in proportion… …   Accounting dictionary

  • rights issue — A method by which listed companies on a stock exchange raise new capital, in exchange for new shares. The name arises from the principle of pre emption rights, according to which existing shareholders must be offered the new shares in proportion… …   Big dictionary of business and management

  • vendor placing — A method of using shares to fund an acquisition by allotting shares in the purchaser to the vendors in exchange for shares in the target (or other assets) so falling within the exemption to the Companies Act 1985 pre emption rights requirements… …   Law dictionary

  • vendor placing — A type of placing used as a means of acquiring another company or business. For example, if company X wishes to buy a business from company Y, it issues company X shares to company Y as payment with the prearranged agreement that these shares are …   Accounting dictionary

  • vendor placing — A type of placing used as a means of acquiring another company or business. For example, if company X wishes to buy a business from company Y, it issues company X shares to company Y as payment with the prearranged agreement that these shares are …   Big dictionary of business and management

  • cash box vendor placing — A method of raising cash from the issue of equity securities which is characterised for Companies Act 1985 purposes as a vendor placing; the non cash assets which are acquired are preference shares in a special purpose subsidiary whose only… …   Law dictionary

  • pre-emption rights — A principle, established in company law, according to which any new shares issued by a company must first be offered to the existing shareholders as the legitimate owners of the company. To satisfy this principle a company must write to every… …   Accounting dictionary

  • pre-emption rights — A principle, established in company law, according to which any new shares issued by a company must first be offered to the existing shareholders as the legitimate owners of the company. To satisfy this principle a company must write to every… …   Big dictionary of business and management

  • secondary issue — An issue of shares by a listed company whose shares are already listed and traded on a stock exchange. There are different types of secondary issues: • rights issues. • open offers. • placings and bought deals. • vendor placings. Practical Law… …   Law dictionary

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