Institutions buying significant percentages of companies are...

Institutions buying significant percentages of companies are always able to directly negotiate a price. They have no need of special offers tot he general shareholders.

If JP Morgan, or whoever, come to a company such as Redflex and offer them a shed full f cash, the company will happily issue stock ata discount. It is the cheapest money a company can get.

If I recall correctly, the annoncement of the share issue mentions the discount is normally available to institutional buyers.