3 for 11 Rights Issue

09:43 Jun 22, 2018
English to French translations [PRO]
Bus/Financial - Finance (general)
English term or phrase: 3 for 11 Rights Issue
AAA recently announced the proposed acquisition of BBB for €3bn.
This will partially be financed by a 3 for 11 Rights Issue at a Rights Issue price of 350 pence.
Nathalie Coutelle
Spain
Local time: 16:13


Summary of answers provided
5 +1émission de droits à raison de 3 nouvelles actions par tranche de 11 actions existantes
Germaine
4 -3'par l'émission de trois nouvelles actions pour onze anciennes actions'
Francois Boye
Summary of reference entries provided
Defining a Rights Issue
Daryo

Discussion entries: 12





  

Answers


4 hrs   confidence: Answerer confidence 4/5Answerer confidence 4/5 peer agreement (net): -3
3 for 11 rights issue
'par l'émission de trois nouvelles actions pour onze anciennes actions'


Explanation:
Les actions anciennes sont celles que les actionnaires possèdent. En fait, il s'agit (voir le document joint ci-dessous) de donner auix actionnaires le droit d'acheter 3 nouvelles actions pour 11 actions qu'ils possèdent à un prix bas.


https://fr.wikipedia.org/wiki/Droit_préférentiel_de_souscrip...

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Note added at 6 hrs (2018-06-22 16:03:15 GMT)
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Le texte de Wikipedia en anglais est plus parlant:

https://en.wikipedia.org/wiki/Rights_issue

Francois Boye
United States
Local time: 10:13
Specializes in field
Native speaker of: Native in FrenchFrench
PRO pts in category: 754

Peer comments on this answer (and responses from the answerer)
neutral  Germaine: Il s'agit d'une émission de droits, pas d'une restructuration du capital - ce que laisse entendre cette formulation. // S.v.p. relisez bien votre référence ou la discussion.
28 mins
  -> https://fr.wikipedia.org/wiki/Droit_préférentiel_de_souscrip... //Il s'agit pour AAA d'acheter BBB avec une emission d'actions et un appel aux actionnaires !.

disagree  Daryo: you confused the "right to buy actions [at a set price]" with the "actions" themselves. // you managed to get the wrong translation from the right references!!
4 hrs
  -> See my debate with Germaine and read my attachments!

disagree  AllegroTrans: Malcompris
5 hrs
  -> PLS be specific!

disagree  erwan-l: Il s’agit bien de droits (attribués, émis), attachés préférentiellement ou non à l'émission d'actions.
12 hrs
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14 hrs   confidence: Answerer confidence 5/5 peer agreement (net): +1
3 for 11 rights issue
émission de droits à raison de 3 nouvelles actions par tranche de 11 actions existantes


Explanation:
L’opération sera partiellement financée par une émission de droits [de souscription] à raison de 3 nouvelles actions par tranche de 11 actions existantes, au prix de 3,50 £ par action.

Alors qu’au Canada, on annonce simplement une émission de droits de souscription visant l’acquisition d’un nombre donné d’actions, il semble que la formulation britannique repose d’abord sur l'augmentation du capital existant, i.e. la proportion de nouvelles actions par rapport au nombre d’actions émises et en circulation à la date de l’émission des droits :

Proposed 9 for 8 Rights Issue… at 95 pence per New Ordinary Share… DS Smith proposes to finance the Acquisition with… a fully underwritten Rights Issue of 9 New Ordinary Shares for every 8 Existing Ordinary Shares at 95 pence each…
https://www.dssmith.com/contentassets/9e13d9878ba548918c161f...
Subject to the fulfilment of, amongst others, the conditions set out below, the Company proposes to offer New Ordinary Shares by way of the Rights Issue to Qualifying shareholders on the following basis... 9 New Ordinary Shares at 95 pence each for every 8 Existing Ordinary Shares held by Qualifying Shareholders on the Record Date.
https://www.dssmith.com/investors/results-and-presentations/... (prospectus)

Pearson, the British media group, continued its expansion… The deal is being funded via a 3-for-11 rights issue at a deeply discounted price of £10 per share.
https://www.independent.co.uk/news/business/news/pearson-tap...
Acquisition to be financed through a 3 for 11 rights issue of 170 million new Pearson shares at £10 per share… Up to 170,500,067 new Pearson shares in aggregate will be offered on the basis of 3 new Pearson shares for each 11 existing Pearson shares to Pearson shareholders…
https://www.pearson.com/corporate/news/media/news-announceme...


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Note added at 15 hrs (2018-06-23 01:11:37 GMT)
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Comme le mentionne la source mentionnée par François:
A rights issue is directly distributed as a tax free dividend to all shareholders of record or through broker dealers of record and may be exercised in full or partially. Subscription rights may be transferable, allowing the subscription-rightsholder to sell them on the open market. A rights issue to shareholders is generally made... on a ratio basis (e.g. a dividend of three subscription rights for two shares of common stock issued and outstanding)...
https://en.wikipedia.org/wiki/Rights_issue#Underwriting

Un droit émis dans le cadre d’un placement de droits est un titre similaire au bon de souscription ou à l’option en ce sens qu’il permet au porteur d’acquérir un autre titre. Un placement de droits présente également des similitudes avec la distribution publique de titres d’un émetteur par l’entremise de la Bourse, mais présente deux caractéristiques distinctives : (a) les droits n’ont pas à être achetés; ils sont plutôt attribués aux actionnaires de l’émetteur; (b) les droits sont attribués uniquement aux actionnaires existants de l’émetteur… les actionnaires peuvent toutefois… vendre leurs droits par l’entremise des installations de la Bourse à des investisseurs qui ne sont pas des actionnaires, pourvu que l’émetteur ait décidé d’inscrire ces droits à la cote de la Bourse.
https://www.tsx.com/resource/fr/439


Germaine
Canada
Local time: 10:13
Specializes in field
Native speaker of: French
PRO pts in category: 614

Peer comments on this answer (and responses from the answerer)
disagree  Francois Boye: En français, on n’émet pas de droits. C’est l’émission d’actions sur un marché public ou dans une société qui donne le droit de souscription à des actions. Si Germaine avait raison, il y aurait un marché de droits au NYSE ou tout autre marché financier.
11 mins
  -> Euh... https://www.nyse.com/get-started/what-to-list + https://www.sec.gov/Archives/edgar/data/921768/0001193125111... + Termium: rights issue = émission de droits

agree  erwan-l: Il s’agit bien entendu de droits et non d’actions. Suggestion : pour lever toute ambiguïté et incompréhension "réflexe" (François B. se trompe à mon humble avis) : utiliser attribution (droits, DSP,...) et non émission.
1 hr
  -> Oui, je comprends que François confond avec le privilège rattaché aux actions de S.A. françaises. Bonne idée cette "attribution"!

agree  Daryo
3 hrs
  -> Merci, Daryo.
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Reference comments


9 hrs peer agreement (net): +3
Reference: Defining a Rights Issue

Reference information:
...

Defining a Rights Issue

A rights issue is an invitation to existing shareholders to purchase additional new shares in the company. More specifically, this type of issue gives existing shareholders securities called "rights," which, well, give the shareholders the right to purchase new shares at a discount to the market price on a stated future date ***[Nota Bene: "Rights Issue" = giving existing shareholders the "right to buy" actions, NOT actions]***. The company is giving shareholders a chance to increase their exposure to the stock at a discount price. (For more, watch the Stock Rights Issue video.)

But until the date at which the new shares can be purchased, shareholders may trade the rights on the market the same way that they would trade ordinary shares. The rights issued to a shareholder have value, thus compensating current shareholders for the future dilution of their existing shares' value. Dilution occurs because a rights offering spreads a company’s net profit over a wider number of shares. Thus, the company’s earnings per share, or EPS, decreases as the allocated earnings result in share dilution.
...
https://www.investopedia.com/investing/understanding-rights-...

https://www.investopedia.com/terms/r/rightsoffering.asp

https://economictimes.indiatimes.com/money-you/whats-a-right...

Daryo
United Kingdom
Specializes in field
Native speaker of: Native in SerbianSerbian, Native in FrenchFrench
PRO pts in category: 279

Peer comments on this reference comment (and responses from the reference poster)
agree  AllegroTrans
12 mins
  -> Thanks!
agree  Germaine: https://lautorite.qc.ca/grand-public/investissements/investi...
2 hrs
  -> Thanks!
neutral  Francois Boye: My attachment have already said that. What is at issue is how to translate it in French!
6 hrs
  -> Well, the same thing might need to be explained in a clearer/more unambiguous way, to make it more difficult to misinterpret it?
agree  erwan-l
7 hrs
  -> Thanks!
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