Dazzler

Had this through regarding my Sanctuary shares. Anyone have a clue what they're on about as I'm a bit wet behind the ears when it comes to this stuff:-

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SANCTUARY GROUP - Open Offer with an Excess Application


SANCTUARY GROUP is proposing an Open Offer on the following basis:


8 New Ordinary GBP?.?? Shares for every 75 existing Ordinary GBP?.??? Shares held at a price of ???p per share.

In addition to this, you may apply for an excess application. If you wish to apply for an excess application then you must enter the total quantity of shares you wish to apply for. For example, If your basic entitlement was 100 and you wished to apply for 20 excess shares then you would enter 120 as the total quantity of shares required.


Based on your holding of ?????? SANCTUARY GROUP ORD GBP??.?? shares on 21 February 2006, which was the Open Offer Ex Date, you are entitled to apply for a minimum of ????? SANCTUARY GROUP ORD GBP??.?? shares at a total cost of ?????? GBP.


You have the following options:
1 Accept the Open Offer to ????? SANCTUARY GROUP ORD GBP????? shares at a cost of ?????? GBP.

2 Accept the Open Offer to ????? SANCTUARY GROUP ORD GBP?????? shares at a cost of ??????? GBP AND take up excess shares.
The excess application may be subject to scaling back and there is no guarantee that you will receive any or all additional shares applied for.


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The Company is also proposing that every ? Ordinary Shares of GBP????? be Consolidated into 1 New Ordinary Share of GBP?????. The Consolidation will take place on 20th March 2006

The Open Offer has to be confirmed by an Extraordinary General Meeting to be held on 17th March 2006. If for any reason the Open Offer is not confirmed, any payment you have made will be returned and you will be notified. If you elect to accept the Open Offer, the shares are expected to be credited to your account, on or after 20th March 2006. These shares will not be available to sell until this date.

If you apply for excess shares and these are not satisfied in full, the cash refund will be returned to you as soon as it is received from the Company Registrar.



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Please note that participation in this event will incur an administration charge of 5.00 GBP in addition to any other payment.



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If you do not wish to apply for any shares you should take no action.


Please ensure you submit your option before 08 March 2006 to enable us to process your instruction in accordance with the Company's timetable for this event.


Any monies will be debited via your nominated bank account on or after the 08 March 2006. Please contact us immediately if your bank or debit card details have changed recently.

Jonathan Davies

It's a rescue rights issue I believe. Sanctuary are issuing new shares to raise £x million, and as an existing shareholder, you have a right to (i) take up a specific allocation and (ii) apply for more new shares if they're available (the excess application).

Whether you want to do that depends on whether you think the company will turn around and be worth something. I.e., is it good money after bad or cash to bring it back to profit?

It might be worth looking at the offer docs to see if there something about keeping the terms of the offer confidential as it goes. Bit late now, obviously, but you could always edit if necessary!

Dazzler

Cheers Jonathan. Can't see anything on the offer, I've pretrty much posted the whole doc that was issued to me. Hopefully thats okay, but may blank out the offer values just in case!

Thanks
Darren

Jonathan Davies

Probably a bit paranoid on my part really. Since they're listed, the offer doc is probably public I guess, but no harm in being a bit careful.

You don't have to do anything about rights issues, but generally a company will have sounded out its big investors before making the offer - i.e., they'll expect it to be taken up. They can be a good way of getting some cheap shares, but it doesn't necessarily work out that way every time.

Kevin Groat

Share consolidation plus an offer to buy extra new shares under the recovery mentioned above.
Check out the bulletin board on ADVFN for some background.

Personally I wouldn't touch Sanctuary at the moment - long road to recovery I'd guess.

Kevin.

Dazzler

Cool, cheers for the advice. I'll take a look on ADVFN