BeardyGuts 6 Posted June 20, 2016 Share Posted June 20, 2016 You are partially correct but you are also missing or ignoring my last sentence "to increase its shareholding beyond a rights issue". In a rights issue if someone doesn't take up their rights they can be taken up by another party. Club 1872's shareholding is easy to deal with. If there are unallocated shares then they could purchase them at that point. If all shares are allocated and the desire is to still see an increased shareholding then they can purchase some shares from King to increase that shareholding. There are many ways to skin a cat !! Maybe there is someone who does not want to maintain shareholding... Easdale for example but the likelihood is I would assume the vast majority will maintain. And can you just offer those that are not taken up to whoever you want? 0 Quote Link to post Share on other sites More sharing options...
craig 5,199 Posted June 20, 2016 Share Posted June 20, 2016 (edited) Maybe there is someone who does not want to maintain shareholding... Easdale for example but the likelihood is I would assume the vast majority will maintain. And can you just offer those that are not taken up to whoever you want? Those not taken up become available on the open market or may be re-allocated to the others rights holders, dependent on the structure of the issue. Edited June 20, 2016 by craig 0 Quote Link to post Share on other sites More sharing options...
BEARGER 1,829 Posted June 20, 2016 Share Posted June 20, 2016 Am I correct in saying that these shares were purchased a month or so ago ? Why the delay in publicising the fact? 0 Quote Link to post Share on other sites More sharing options...
pete 2,499 Posted June 20, 2016 Share Posted June 20, 2016 The best way would be for the board to loan money from C1872 for shares as the board members have done I suppose, but they don't seem to want to do that. 0 Quote Link to post Share on other sites More sharing options...
calscot 0 Posted June 20, 2016 Share Posted June 20, 2016 I don't know the ins and outs of this but I can think of a few reasons for doing it. The main one being that I doubt the constitution of C1872 allow the taking of money accruing it in some bank account. It's probably not fulfilling the mission statement and possibly creates a temptation for fraudulent use of the money, say like Father Ted, with the "just resting in my account before I moved it on." It could be that they believe share price is undervalued at the moment and set to rise and so more shares for the money. It also hoovers up available shares that could be tempting for charlatans or speculators and removes them from disinterested parties. The money doesn't go to the club but without a mechanism for that, I don't see how they can just sit on their hands. 0 Quote Link to post Share on other sites More sharing options...
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