Category: Money tips Release Date: 2006-01-05
Comrade Zhou:
I am a holder of a convertible bond, due to busy work day, the implementation of the convertible bonds this antecedent-tradable share reform and the suspended and the matter has not been until recently on the price can tell. To this end I have sent a letter to the company's objection to the practice of calling for adoption of remedial measures, but feedback is not promising. I think that for Major Holders not included in the price of convertible bond issues promised a share transfer price adjustment issues, but because of the date of issue of convertible bonds issuers and subscription can not be predicted per-capita share transfer will be implemented during the split share structure reform, while the split share structure the reform of the shareholders to be in circulation in circulation in Central Africa on the price of the shareholders, and its essence is a result of non-tradable shares in circulation due to the intrinsic value of outstanding shares to reduce the compensation, though not for Major Holders for prices before and after the ex, but the actual market is automatically an ex-dividend, so the convertible bonds the holder, its in the price of the stock before and after the switch to the intrinsic value and market value of significantly different. The company unilaterally announced the implementation of the future price of the stock not on the price of share transfer is not a lack of foundation? At present, through the broker can contact the shareholders, while the impact of convertible bonds for such a significant investor interest, only notice method advised that it unfair to shareholders?
Zhejiang Shiu
Mr Shaw:
Split share structure reform the theory of the most crucial prerequisite for the recognition of the outstanding shares including the right to change when the non-tradable shares "temporarily circulation" of the contract, but want to in the secondary market circulation, is bound to a certain impact on the outstanding shares, so must be paid to the shareholders of the outstanding shares of the value of the circulation of the right to make non-tradable shareholders because of the circulation of non-tradable shares damaged.
As a financial variety of convertible bonds are bonds and stocks both in nature, whether the holders of convertible bonds will be convertible into shares of uncertainty, such as the holders of convertible bonds assume that people choose to sell or go back period of recovery of principal and interest, then whether to proceed with the split share structure reform, holders of convertible bonds shall not affect the legitimate rights and interests, naturally less compensation. Similarly, taking into account the share of convertible bonds, to split share structure reform of the companies are requiring that if the equity holders of convertible bonds before the registration deadline can share transfer will be, and other negotiable A shareholders to enjoy the same market price.
While the convertible bond holders get the company through share transfer of non-tradable shareholders to pay the right price. However, this approach forced the holders of convertible bonds tradable share reform program implementation, share transfer, in fact, or may damage the convertible bond holders the right to choose the timing of the share transfer, and even harm the interests of holders of convertible bonds .
As the split share structure reform is a top-down driven, therefore, the holders of convertible bonds to protect the interests of the policy yet to be clarified. As the number of shareholders of listed companies can not be one to one served a notice, so the law allows companies to its shareholders a notice to be served notice.
