Commentary

D6.248 Other forms of share issue—open offer and vendor placings

Corporate tax
Corporate tax | Commentary

D6.248 Other forms of share issue—open offer and vendor placings

Corporate tax | Commentary

D6.248 Other forms of share issue—open offer and vendor placings

A company can raise funds in ways which are similar to a rights issue in that existing shareholders are offered the opportunity to subscribe for the new shares. However, they are not conventional rights issues because there is no provisional letter of allotment which the shareholder can sell 'nil paid'.

Broadly these arrangements fall into two categories, open offers and vendor placings. However, there is no commonly accepted vocabulary and vendor placings are sometimes described as open offers. Therefore, in any individual case it will be necessary to look at the underlying transaction, not the label used to describe it.

In addition, a number of companies have carried out 'cash box' placings which are structured as an issue of shares for non-cash consideration.

Open offer

Shares

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial