I agree pro-rated renounceable rights offer is the fair way to go. I was disappointed existing shareholders were bypassed in this CR, though the CR itself is a positive step for NEN - and good to see it well supported at a relatively low discount - now a premium :-)
There seemed something fishy about the Directors seeking a vote to participate while denying shareholders the chance. I emailed NEN to express my disapproval at that. I've had a reply from the MD who explained the challenges of offering participation to 4000 current shareholders and their desire to get more institutions on the register with longer term commitment and support of the business. I guess that should result in more analysis, coverage and therefore more transparency around valuation which will be in everyone's interest. It also keeps register administration costs down. Its an angle that I hadn't considered.
NEN Price at posting:
23.0¢ Sentiment: Buy Disclosure: Held
