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Re: FW: Anglo Platinum Limited (AMS) Rights Issue - Please advise: Which option is the best ????

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Which option makes the most sense: I'm of the opinion that the 1st option is the best. Your shareholding in Anglo Platinum Limited (AMS) shares entitles you to participate in the above mentioned corporate event, subject to the terms and conditions mentioned below. Please note that this corporate event requires your immediate attention and action. In terms of this event shareholders recorded in the register of Anglo Platinum Limited as at the 26th of February 2010, will receive 10.3823 nil paid letters (AMSN) for every 100 ordinary shares. One right/nil paid letter will entitle shareholders to take up one Anglo Platinum Limited ordinary share at an offer price of ZAR502.18 per share. Please note that the last day to trade in Anglo Platinum Limited ordinary shares, in order to qualify for the issue of the rights/nil paid letters (AMSN) was the 26th of February 2010 and that the payment date (the date on which shareholders will receive their rights/nil paid letters) is the 08th of March 2010. With regards to the rights/nil paid letters issued to you, please note that you have the following options: Option One: Exercise the rights/nil paid letters and take up the Anglo Platinum Limited ordinary shares at the offer price of ZAR502.18 per share. Should you wish to take this option, kindly ensure that your instruction reaches us by the response deadline date, which is on or before 10h00 the 22nd of March 2010, and that the necessary funds are deposited in our bank account by the 22nd of March 2010. Option Two: Sell the rights/nil paid letters in the market at the going market price. If you elect this option please note that the first date to trade in the rights/nil paid letters is the 1st of March 2010, and the last date to trade is the 18th of March 2010. Please note that this option must be executed via your trading account or by contacting your Equity Advisor. Option Three: Take no action and lapse the rights/nil paid letters. By taking this option you will lose the value of the rights/nil paid letters. Option Four: The rights offer also allows you to apply for excess shares i.e. Anglo Platinum Limited shares not taken up in terms of this rights offer will be available to shareholders that participate in the rights offer and who wish to take up additional Anglo Platinum Limited shares, at the offer price of ZAR502.18 per unit. For the avoidance of doubt, please note that excess applications are not guaranteed as they will depend largely on the Issuer, Anglo Platinum Limited, and whether the rights offer is under subscribed or over subscribed. Should you decide to apply for excess shares please ensure that your instructions reaches us by no later than the 22nd of March 2010, 10h00 S.A. Time, and that the relevant funds are deposited in our account by the 22nd of March 2010
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1 REPLY 1
topgun
Super Contributor
Well, you could sell the AMSN's and regard it as a divi or, if you are bullish on the platinum price and a sustained global recovery and upswing in vehicles sales (which you apparently are since you are already invested), follow your rights. AMS seem to be getting their costs under control and should resume divi's this year on a much reduced debt load. I would exercise my rights.
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