Premier foods – Rights Issue – Questions & Answers
These Questions & Answers are aimed specifically at Barclays Stockbrokers clients who hold Premier foods Shares.
Q. What is a Rights Issue?
A. A rights issue is a way for companies to raise capital. Premier Food is giving its existing ordinary shareholders a right to buy further Ordinary Shares in proportion to their existing shareholdings.
Q. What are the terms of the Premier foods Rights Issue?
A. The terms of the event are that shareholders will be allocated eight Nil Paid Share (right) for every five existing Ordinary Shares held on the Ex Date. For every right issued shareholders can purchase one new share at an issue price of 50 pence per new ordinary share.
Q. What is a Record date?
This is the date on which the Company Registrar closes its records.
Q. What is the Ex Date?
A. The Ex Date for the Premier foods rights Issue is Monday 24 March 2014.
This is the date which entitles you to take part in the Rights Issue. If you hold shares prior to the Ex Date, or have agreed to buy shares and your trade date is prior to the Ex Date, you will be entitled to participate in the Rights Issue. If you purchase shares on the Ex Date you would not be entitled to take part in the rights issue.
Q. When will the rights be credited to my account?
A. The rights were credited to your account on Tuesday 25 March 2014.
Q. What options do I have under the Rights Issue?
- 1. You may be able to take up some or all of your rights.
You can choose to exercise your rights by buying some or all of the new shares you are entitled to.
For example if you hold 100 shares on the Ex Date you will be issued with160 Rights, these rights if exercised will entitle you to 160 new shares at a total cost of £80.
Rights entitle the holder to buy shares; as such, the rights themselves have a value, and you could choose to sell them if there is a market to do so.
- 2. Sell your rights.
The last day in which you can sell is 4 April 2014
- 3. Sell a proportion of your rights to generate sufficient funds to exercise the rest of your rights.
- 4. Allow your rights to lapse.
This is where you choose to do nothing with your rights. In which case they will be left to lapse and you might receive a lapsed proceeds payment although this is not guaranteed.
Q. When do Barclays Stockbrokers need my response by?
A. To take part in the Rights Issue we need your response by Monday 31 March 2014.
Q. What happens if I do not reply?
A. If you do not tell us what action you wish to take by the reply date, or if the instruction you provide is unclear, we will take no action on your behalf and your rights will lapse.
Q. How do I reply?
A. The easiest and most convenient way to take up your Rights is through our website at BarclaysStockbrokers.co.uk here you can logon to your account and provide us with your instructions.
Alternatively you can give your instructions by telephone by calling 0800 901 2911 If you would like to sell your rights:
-Sell your rights online by logging into your account at www.BarclaysStockbrokers.co.uk and select the "Portfolio & deal" tab.
-Sell your rights by calling us on 0800 279 6551 or UK Local 0141 352 3909, and select Option 2.
If you would like to sell a proportion of your rights to generate sufficient funds to
exercise the rest of your rights.
-Give your instructions by telephone by calling 0800 901 2911.
Q. Can I apply for excess rights?
A. No, there is no option to take up shares in excess of your entitlement. You will be unable to purchase additional rights via Barclays Stockbrokers.
Q. Can the deadline be extended?
A. No. The Premier foods reply date is based on the Company's market deadline in order to give us sufficient time to action your instruction.
Q. If I apply for new shares when can I expect my account to be updated?
A. Your account should be updated to reflect the new shares that you have taken up on Tuesday 9 April 2014
Q. Can overseas holders take part?
A. Overseas residents should consult their professional advisers as to whether they require any governmental or other consents or need to observe any other formalities to enable them to participate in the offer.
Q. How do I pay?
A. Please ensure there are enough funds available to cover the cost of taking up your rights in your chosen account by 5pm on Monday 31 March 2014. We will debit the funds from your account within five working days of this date.
If you are taking up the rights in a Market Master and you do not have sufficient funds in place, your account will become overdrawn. Your Direct Debit instruction will then be used to bring your account into credit. Debit Interest may be charged to your account.
Q. How do I fund my account?
A. You can fund your accounts online by debit card using the cash manager facility. This is located in the ‘Portfolio & Deal' section once logged in. This will allow you to select the MarketMaster or ISA you wish to add funds to. Once complete, this payment will show immediately.
Q. My Rights are held in an ISA but I cannot add more cash to take these up, do I lose my Rights?
A. No. If you do not hold sufficient cash in your ISA to take up your entitlement you can generate this by selling stock you already hold within the ISA. Please ensure that any sale is placed on or before Monday 31 March 2014. Alternatively you can take up the rights within your MarketMaster account, simply make this clear when giving your instruction.
Q. How do I fund my SIPP Account?
A. If you do not hold sufficient cash in your SIPP to take up your entitlement you can generate this by selling stock you already hold within the SIPP. Please ensure that any sale is placed on or before 2 April 2014.
You can fund your SIPP account online using the link below;
SIPP debit card payments are made directly to the pension administrator to allow them to reclaim the tax on your contribution. Due to this fact, these payments must go through a clearing process meaning that they will take 5 working days to show on your SIPP.
Q. I have elected to take up the Rights Issue in my ISA/SIPP and I will not have enough cleared funds in place by the 31 March what will happen?
A. Failure to ensure that there are sufficient funds in place in your ISA or SIPP will result in your election being scaled back or no action being taken on your behalf.
Q. What will happen if I allow my rights to Lapse
If you do nothing and allow your rights to lapse, you may receive a lapsed proceeds payment, after the event closes, in exchange for your rights however this cannot be guaranteed as the company may not always pay these.
Q. Who do I contact if I have any queries?
A. If you have any queries on the scheme please feel free to contact our Corporate Actions Enquiry Team on UK Freephone 0800 901 2911.
As always, please remember that investments can fall in value as well as rise and you could get back less than you initially invest.
Barclays Stockbrokers provides an execution-only service and does not provide personal financial advice about the suitability of an account or any investment you hold within it.