I own a specific stock for the last 6 months or so, and did a few transactions on it: DUFN.
Today, after putting in another order, I was surprised by IB with the following message:
The product DUFN.RTS is provided on an indicative and informational basis only. IB does not represent the valuation for this instrument is accurate. […]
I am confused. What do they mean by this? Its the first time I see something like this.
I also have some DUFN shares in my portfolio and noticed that popup too.
There is a message in the IB mailbox asking me to take an action, it sounds like a proposal from Dufry to subscribe to a new product but being at work right now, I have not had time to figure out the implications.
If somebody knows more or has an opinion on this offer, I’m definitely interested.
I have som DUFN as well, go to your message center and there you can chose how many rights you want to excercise. I thibk the rights are not tradable and have therefore no value. Hope this helps.
So indeed, I do have a message there. Now, I have no idea what this is. I think I will just ignore it? It seems like I can allocate by 45 currently owned shares as Rights? What product is this?
For every 9 shares that exist, they will issue 4 new shares. That means you can buy [0;4;8;12;16;20] new issued shares at a price [between 28.5 CHF and the market price???] to be determined on the 20th october. If you ignore this, Advent International and/or Alibaba will buy the 20 new shares you refuse to buy.
I could also phrasing the events like that, if you want less pressure
Dufry has projects to create a joint venture with Alibaba, to increase their online capabilities. They want to buy the remaining share of Hudson Ltd as well. For that they need new money, that the nice Advent International and Alibaba would be happy to provide. But regulations are here to protect the investors, so you have the right, should you want to, to keep your exact % in the company.
Basically you don’t really need to do anything. Those RTS things will go away on the 19th or 20th of October.
They also aren’t really a benefit for small retail investors. You can always buy a few shares without problems.
They are meant for people that own like 30% of the company, so their rights don’t get instantly diluted when new shares are created.
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