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ABI response to FSA proposals to reduce Rights Issue periods

Commenting on the FSA's proposals to reduce rights issue subscription periods, as recommended by the Rights Issue Review Group, Peter Montagnon, the ABI's Director of Investment Affairs, said

"We are pleased with this move, as it will allow companies to raise capital faster and gives existing shareholders time to decide whether to take up their rights."

"ABI members fully support the need to speed up the capital raising process, and we look forward to helping develop the other recommendations agreed by the Group."

The ABI has already implemented a recommendation of the Review Group by changing its guidelines so companies, when undertaking rights issues, can issue new shares worth up to two-thirds of their existing capital without holding an extraordinary shareholder meeting. The previous limit was one-third of shares.

Last updated 01/07/2016