I just got my notice from Schwab and it begins:
The Rights Offering is being made to investors who are Qualified Institutional Buyers as defined under Rule144A under the U.S. Securities Act of 1933, (determination at a beneficial holder level)
In general, a Qualified Institutional Buyer (QIB) is an entity, acting for its own account or for the accounts of other QIBs, that in the aggregate owns and invests on a discretionary basis at least $100 million in securities of issuers that are not affiliated with the entity. Such holders will be required to certify their eligibility status. Please review the attached Schwab QIB Certification for qualifications.
The offer is also directed to persons in the United Kingdom that are (i) are investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) (the Order) or (ii) high net worth entities, and other persons to whom falling within Article 49(2)(a) to (d) of the order (all such persons together being referred to as Relevant Persons).
** IF YOU DO NOT MEET THE ABOVE REQUIREMENTS, PLEASE DISREGARD THIS NOTICE **
Now, as I read that, all us little guys don't qualify and only major institutional holders will be able to exercise the offer. Am I misreading this?
It goes on to say:
Arcam AB has distributed transferable subscription rights to holders as of October 19, 2017 (the Record Date) to purchase up to 4,109,286 of its ordinary shares. Eligible holders received one subscription right for each share held on the record date. One subscription right entitles the holder to purchase five (5) new ordinary shares at a subscription price of 240 Swedish Krona (SEK) per share (approximately $29.23 USD, based on the currency exchange rate on October 24, 2017).
And I read that as being able to buy 5 shares for each one held currently, the opposite of buying 20% of what is held currently ... even though the offer seems to only include enough total shares amounting to about 20% of the current shares and that these are available first come, first served. If so, it seems like GE could put themselves first in the queue, buy all the shares, and leave everyone else out in the cold. Would this give them 90%?
