US holders of Nufarm cannot participate in the rights offering. Normally what I have seen other Australian companies do in such cases is to give the holders they are forbidding from participating a small cash stipend and then give their rights to other entities. Sometimes you see the rights offer trade separately.
In Nufarm's case, my broker is telling me that Nufarm intends to just screw the holders who are not allowed to participate. The rights offers cannot be exercised but they won't allow the rights to be traded and they also won't give any compensation for those rights.
Is that legal under Australian law? They are arbitrarily diluting just one class of shareholders in discrimination to other classes of holders. That's just not right is it?
NUF Price at posting:
$7.64 Sentiment: Hold Disclosure: Held
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