I am overseas and have had 250k VBA shares for some months. I noticed that VBA are having a 1:1 rights issue @ 20 cents. I was going to leave this alone as my average price was around 40 cents and I couldn't afford another $50k to buy more shares and anyway i believed the share price would plummet to around 20 cents. Now i see the share price is at 38 cents (as of today) and I am suddenly thinking if I have any options. Can I take up on this offer still? Can I sell my shares and still take up on the offer? I no longer have a full service broker and feel it may even be worth coming back to Aus for a short holiday if this is what it appears to be. Unless I am missing something then the way I see it is that i could sell my current holding for $95k (presuming today's closing price). Take up the offer for 250k shares @ 20 cents. Come back to Aus and get a bank cheque for $50k to pay for them and have the same holding as I currently have (250k) and $45k in the bank! Can anyone in HC land give me an insight into what I am missing. Appreciate anyone's sensible response
VBA Price at posting:
38.0¢ Sentiment: None Disclosure: Held
