Rights Excercise - someone explain7 Mar 2019 18:15
Holders of Interserve PLC Basic Entitlement (IRVBAS.XLON.GB) shares have the right to subscribe for Interserve PLC ORD 0.1P (IRV.XLON.GB) shares. Each entitlement held gives the holder the right to purchase a share for an exercise price of GBP 0.153000. For holders electing to subscribe, subscription monies will be debited after the 12 March 2019 and new shares are due to be allotted on or around the 19 March 2019. Elections must be submitted by 12 March 2019 otherwise the default election option will be applied.
Could someone more experienced please explain what this actually means? at the moment 15p is actually marginally higher then the standard ask price now so whats the incentive, if any?