Rights offerings: Exemption situation
Restrictions apply to US shareholders wanting to participate in unlisted UK companies' rights offerings, but there are exemptions availableWith banks unwilling to lend and public markets all but closed, UK companies have been tapping their existing shareholders for cash by means of rights offerings. According to Trowers & Hamlins partner Richard Hilderbrand, who has been involved in several UK rights offerings, such rights offerings by UK companies that are not listed on US exchanges, typically contain language excluding US shareholders from participating in the offer and prohibit sending the UK prospectus into the US. US shareholders may, however, participate in a rights offering, and the company may send the prospectus into the US, if an exemption from the registration requirements of the US Securities Act of 1933 is available.
Restrictions apply to US shareholders wanting to participate in unlisted UK companies’ rights offerings, but there are exemptions available
This premium content is reserved for
Legal Week Subscribers.
Subscribe today and get 10% off.
A PREMIUM SUBSCRIPTION PROVIDES:
- Trusted insight, news and analysis from the UK and across the globe
- Connections to senior business lawyers within the leading law firms and legal departments
- Unique access to ALM's unrivalled, market-leading reporting in the US and Asia and cutting-edge research, including Legal Week's UK Top 50 and Global 100 rankings
- The Legal Week Daily News Alert, Editor's Highlights, and Breaking News digital newsletters and more, plus a choice of over 70 ALM newsletters
- Optimized access on all of your devices: desktop, tablet and mobile
- Complete access to the site's full archive of more than 56,000 articles
Already have an account? Sign In Now
For enterprise-wide or corporate enquiries, please contact Paul Reeves on Preeves@alm.com or call on +44 (0) 203 875 0651