Sembcorp Marine shareholders must now decide on rights takeup

THE experience of the Securities and Investor's Association (Singapore) - or Sias - is that when companies announce complex deals, many small shareholders are often in the dark as to what they have to do and the timeline they have to follow.

This came to light recently during a capital raising exercise by Singapore Airlines (SIA) that involved an issue of new shares and mandatory convertible bonds.

Some shareholders thought that their responsibility ended once they had voted at the extraordinary general meeting (EGM). They were mistaken - if there is a rights issue involved, and if it has been approved at EGMs, shareholders must then decide whether to subscribe to the rights, or sell their rights, or let the offer lapse.