AEDIFICA(SUB)C32 – BE0970183860
It’s complex stuff as this is all relevant to Belgium law but it appears that the Priority Allocation Rights are designed to give shareholders the option of maintaining their percentage shareholding in the company after the corporate action (like a Rights issue in the UK).
Shareholders will receive these rights as part of the corporate action and have the right to either exercise their right to convert these into ordinary shares or, alternatively, sell them in the market (if there is one) during the period of 22 June to 29 June (as confirmed in the prospectus – see below). After this date, the grey area is do the Priority Allocation Rights effectively disappear or do they continue. We can’t clarify that.
If they are just an interim measure where the shareholder can either exercise them or sell them up until 29 June, that is fine and is similar to a Rights issue.
If they continue after 29 June, then its maybe not as clear. So, Priority Allocation Rights, like ‘nil paid rights’ are not ISA qualifying and can’t be held long term. They are only for the short term.
In summary, if they are just a short-term element of the corporate action process (which is obviously very complex), then I don’t see a problem with holding these Priority Allocation Rights within a ISA.
The Priority Allocation Rights (coupon no. 32) will be detached from the Shares on 21 June 2023 (after closing of the markets – ex-coupon date 22 June 2023) and are expected to be traded on the regulated markets of Euronext Brussels and Euronext Amsterdam during the Subscription Period, i.e., from 22 June 2023 (9:00 CEST) up to and including 29 June 2023 (16:00 CEST). The Priority Allocation Rights will have ISIN code BE0970183860.