Revised Statement of Principles for the Disapplication of Pre-Emption Rights
Friday, 22nd May 2015
The 2015 revised statement of principles published by the Pre-Emption Group relates to UK and non-UK premium listed companies on the Official List.
The Pre-Emption Group also encourages the adoption of the revised statement by AIM companies or standard listed companies on the Official List or High Growth Segment of the Main Market.
The revised principles, now allow, in addition to the existing 5 per cent for wider purposes, a general authority to issue non-pre-emptively for cash up to an additional 5 per cent of the issued share capital in any one year.
However, a company wishing to seek such additional authority must state in its AGM circular that such authority is intended to be used for an acquisition or a stated capital investment announced contemporaneously to the issue or within the last six months provided it is also disclosed in the issue announcement.
The statement also requires any discount for an issue to be announced in the issue pricing announcement.
The revised statement was described by the Pre-Emption Group as being a framework to encourage dialogue between a company and its shareholders, and not a set of rules.