There has been some debate as to whether shareholders (particularly in the secondary market) were clearly told what they were buying (by either BCS or brokers). It is interesting that the initial float seems to have been marketed as stapled units rather than instalment receipts (which is the more accurate description). Does anyone still have a copy of the application form? Telstra were clear with T3 that they were not issuing shares but receipts which on final instalment would become shares. Ditto the original Commonwealth Bank float in the late 90s where the whole procedure was far clearer and the title for shares remained with the issuer until fully paid.
This is a quote re the CBA issue which seems far more straightforward: "After making the first instalment, investors will receive to the extent lawful and practical the full benefits of ownership of the underlying shares. They will not, however, receive title to the shares until the second instalment payment is met. Instead, investors will receive Instalment Receipts matched to the underlying shares, with the shares themselves being held in trust for the investors by a separate trustee company, called Commonwealth Instalment Receipt Trustee Limited, pending the payment of the second instalment. The effect of this arrangement is that, between the first and second instalments, Commonwealth Instalment Receipt Trustee Limited would hold title on trust."
BCS Price at posting:
0.0¢ Sentiment: Sell Disclosure: Not Held
