How the Aryzta Rights Issue will work

Discussion in 'Investments' started by Brendan Burgess, 2 Nov 2018.

  1. Dannypier

    Dannypier New Member

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    2
    That's what they told me yesterday, but this evening I was told that we more than likely have no hope of getting anything.
    Link are sending out a letter explaining from there side what happened here.
     
  2. Brendan Burgess

    Brendan Burgess Founder

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    Great article by Dominic Coyle which explains it well.

    Aryzta investors lose 90% of stake in business


    Hundreds of long-term shareholders in troubled food group Aryzta have seen their stake in the company decimated after they were effectively locked out of a major rights issue.


    The shareholders received notice only yesterday of how to go about claiming their rights. But they were told that in order to hit the noon deadline on Thursday for taking up the shares, they needed to indicate their interest to their intermediary by Monday – the day before the letters arrived.

    They appear to have lost out in part because of choices they made at that time. When Aryzta was formed, IAWS shareholders were given a choice. Either they could hold their shares in electronic form and receive information electronically -– i.e. by email – or they could continue to hold their shares in traditional paper form and be contacted by post regarding company events and disbursements.


    This latter group were held in what is called a bare trust, which is managed by a trustee called Link, formerly Capita. Link also manages the “dematerialised” shares held in electronic form for other investors.
     
  3. rob oyle

    rob oyle Frequent Poster

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    By way of update, Davy Select processed the rights requests for Aryzta shares purchased on the Irish stock exchange on Tuesday but not yet those for shares listed on the Swiss exchange*. Could also be the case that it is taking some time longer for transactions to be reflected on accounts.

    * If you had IAWS shares that converted in 2008, these Aryzta shares are traded on the Swiss exchange. Otherwise, you're likely to have Irish-traded shares if bought more recently.
     
  4. Brendan Burgess

    Brendan Burgess Founder

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    Rob

    That is very interesting and clears up something which I had not understood.

    So those who had IAWS shares were able to sell their rights because they were on the Swiss Exchange.

    Those who had bought recently were on the Irish exchange so could not sell their rights.

    What a mess.

    Brendan
     
  5. wheeler dealer

    wheeler dealer Registered User

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    15
    Is it too late to sell the rights ,if you had the aryzta shares that are traded on the swiss stock exchange with Link
     
  6. Deiseblue

    Deiseblue Frequent Poster

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    735
    I was informed that to sell the rights you had to have emailed such instructions to Link by 10 am on the 12th.
    Your best bet may be to email Aryzta pointing out that the Link letter setting out the rights option was not received until the 13th and asking them how they intend dealing with this debacle
     
  7. Brendan Burgess

    Brendan Burgess Founder

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    Deise

    Did you get to act on time? You had mentioned in an earlier post that you were away?

    Brendan
     
  8. Deiseblue

    Deiseblue Frequent Poster

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    735
    No , Brendan - failed utterly, was in Seville when I got a email from Link on the Friday but far too late too take any action by the cut off point.
     
  9. shan999

    shan999 Registered User

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    13
    Stella66,did you get sorted with your fathers shares,i still dont know if i got shares, i had replied on time but paid in sterling as this was my only
    option on banking365.
    Just got a email alert from aryzta,they announced that 97.5% of the shares were taken up,but that still leaves 22 million shares to be sold next week,what are the chances of getting some of these.
    what are the chances of getting some of these
     
  10. rob oyle

    rob oyle Frequent Poster

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    556
    Chances are the rights issue is underwritten so the shares will be purchased by the underwriters, to maintain share price stability, so not available to the public/other shareholders.
     
  11. shan999

    shan999 Registered User

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    13
    See good article by brian carey in todays times newspaper,he is the business reporter that has been updating us on aryzta,he had a swipe at link assets.

    Where do we go from here
     
  12. Deiseblue

    Deiseblue Frequent Poster

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    735
    I’m told that Link are to issue a letter explaining their position which I can only imagine will be couched in an exculpatory manner.
    I don’t believe that Link alone are responsible for this debacle.
    Have you emailed Aryzta with your concerns ?
     
  13. Brendan Burgess

    Brendan Burgess Founder

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    So how much has the failure to take up the Rights Issue cost people?

    They could have bought 10 shares for 88 cents each.

    They are currently worth €1.14 ( although they are fluctuating wildly)

    So they have lost about 30 cents per new share

    Which is about €3 for each share they held before the Rights Issue.

    Anyone who subscribed has also seen a fall in value

    upload_2018-11-26_8-44-24.png


    They now have 11 shares worth €12.50

    So it's a fall of about 18%. Of course, that depends on the share price of €6.40 which I took on the day I started this thread and the €1.14 share price today. A small change in either would reduce or increase the losses.

    Brendan
     
  14. shan999

    shan999 Registered User

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    13
    SEE ARTICLE IN TODAYS IRISH TIMES RE LINK AND ARYZTA IN DISPUTE WHO MESSED IN RECENT SHARE ISSUE
     
  15. Brendan Burgess

    Brendan Burgess Founder

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    Aryzta trustee hits back at company over rights issue debacle
    Link Asset Services claims food firm is to blame for Irish shareholders missing out


    Two completely different versions of events:

    “Under the terms of the transaction documentation entered into between the trustee and the company, the company was required to provide notice of all matters relating to the company and the company’s shares direct to holders. It did not do so,” Link said in the letter to shareholders seen by The Irish Times


    “It became apparent to Aryzta that Link was not prepared for the rights issue – despite relevant information being distributed on October 11th to all shareholders,” the company said.
     
  16. rob oyle

    rob oyle Frequent Poster

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    556
    The fall off in Aryzta share price continues... we're almost at the offer price from the rights issue, which wipes out the benefit in subscribing.
     
  17. Brendan Burgess

    Brendan Burgess Founder

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    We do not allow speculation about the price of shares on Askaboutmoney. Posts speculating about the price have been deleted.

    You can continue to post on the mechanics and issues such as Rob's last post.

    Brendan
     
  18. Brendan Burgess

    Brendan Burgess Founder

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    36,813
    Brian Carey has been writing about it in the Sunday Times a lot recently.

    Aryzta bake-off hots up

    (Subscription required)

    Link has told the investors that it has independent legal advice confirming it fulfilled “all its legal, fiduciary and contractual duties”. This does not mean it offered a good service, of course.


    The company, chaired by corporate grandee Gary McGann, was fully aware of the challenges that a Swiss rights issue held for these shareholders. While it issued warnings, its delays in issuing formal notices to Link proved critical.

    ...

    Meanwhile, the rights issue diluted the holdings of the locked-out investors and damaged the value of their investments. Reputations have been stained. Aryzta should distribute to the locked-out shareholders all of the profits it earned from selling unclaimed rights issue stock in the market. It should screw the legal advice and do the right thing.