Rights issues

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QUESTION 3: RIGHTS ISSUES

The Argosy Property Ltd of New Zealand issued the following capital raising presentation document. 
https://www.argosy.co.nz/sites/default/files/pdfs/2013%2007%2001%20-%20Argosy%20Market%20Announcement%20Presentation.pdf

The company also followed this with a formal Rights issue prospectus. 
https://companyresearch.nzx.com.ezproxy.aut.ac.nz/deep_ar/newpage.php?pageid=event&default=ARG

Read the contents of both documents and answer the following:

3.1 Provide comments on the rationale provided for the issue.
3.2 Specify the terms of the issue, the anticipated ex-rights price and calculate the value of a right
3.3 The Prospectus suggests that for ‘eligible shareholders' there are four different 
actions available:
3.3.1 Take up all Rights
3.3.2 Sell all Rights
3.3.3 Take up some of the Rights and sell the balance
3.3.4 Do nothing

Assuming you hold 7000 shares in Argosy Property Ltd, evaluate your wealth position if you opt for each of the actions suggested above

Reference no: EM13316526

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