Pre-Emption Group expectations for issuances in the current circumstances

News types:

Published: 1 April 2020

Statement on behalf of the Pre-Emption Group

In order to help companies in these exceptional circumstances, the Pre-Emption Group (PEG) has today issued a statement recommending investors consider supporting issuances of up to 20% on a case-by-case basis. Investor expectations about the way in which such issuances will be undertaken are outlined in the full statement.

The principles of pre-emption are a cornerstone of the UK market to which investors remain committed. The PEG recommendation to apply additional flexibility will be in place on a temporary basis until 30


September 2020. The PEG will reconvene before then to assess how companies and investors have responded to the flexibility.

Simon Fraser, Acting Chair of the PEG, said:

“In these exceptional times the PEG wishes to support companies to ensure they have access to the capital they need. The PEG recommends investors consider additional flexibility, but appropriate engagement remains key.”

The Financial Reporting Council (FRC) acts as Secretariat to the Pre-Emption Group. The Pre-Emption Group issues best practice documents regarding authorities to disapply pre-emption rights. The Group represents listed companies, investors and intermediaries.