The UK Pre-Emption Group (PEG) issued a statement, published on
April 1, 2020, regarding its expectations for non-pre-emptive
issues by companies listed in the UK in the context of the
coronavirus pandemic.
Temporary increase
The PEG recommends that investors, on a case-by-case basis,
consider supporting non-pre-emptive issues by companies of up to
20% of their issued share capital until September 30, 2020 (the
temporary period), rather than 5% for general corporate purposes
with an additional 5% for specified acquisitions or investments, as
set out in its statement of principles (the normal thresholds).
The PEG emphasised that its statement of principles already
permits companies to request a specific disapplication of
pre-emptive rights from shareholders outside of the normal
thresholds, and this process should continue to be respected.
