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New Prospectus Regulation – the PEG Statement of Principles will remain the same

Print publication

07/11/2017

The Pre-Emption Group has confirmed that the pre-emption thresholds in its Statement of Principles laid down in 2015 will remain the same despite the introduction of the new Prospectus Regulation on 20 July 2017.

The 2015 Statement of Principles allows for the general disapplication of pre-emption rights in respect of up to 5 per cent. of the issued share capital on an unrestricted basis and a further 5 per cent. of the issued share capital provided the funds are used in connection with an acquisition or specified capital investment.

As discussed in a previous publication, the new Prospectus Regulation allows an issuer, which already has securities admitted to trading on a regulated market, to admit further securities without the need for a prospectus as long as the securities represent less than 20 per cent. of the same class of security. Despite this relaxation of the requirement for a prospectus, the Pre-Emption Group has confirmed that the thresholds in its guidance will remain the same.

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