Lloyds shares offer to the public

Thrugelmir · 6 October 2015 at 10:31PM

Here's a recent placing notice for RBS.

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION INTO OR IN THE UNITED STATES, CANADA, AUSTRALIA OR JAPAN OR ANY OTHER STATE OR JURISDICTION IN WHICH SUCH RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL. PLEASE SEE THE IMPORTANT NOTICE AT THE END OF THIS ANNOUNCEMENT

4 August 2015

UK Financial Investments Limited (“UKFI”)

Disposal of approximately 5.4% of The Royal Bank of Scotland Group plc

Further to its announcement on 3 August 2015, UKFI announces the successful completion of the disposal of part of HM Treasury’s shareholding in The Royal Bank of Scotland Group plc (the “Company”). The disposal was effected by way of a Placing (the “Placing”) of ordinary shares (the “Placing Shares”) by way of an accelerated bookbuilding process to institutional investors.

In summary, following settlement of the Placing which will take place on 6 August 2015:

● The shareholding of HM Treasury will be reduced from 3,964,483,519 ordinary shares, representing approximately 61.3% of the ordinary share capital of the Company, to 3,334,483,519 ordinary shares, representing approximately 51.5% of the
ordinary share capital.
● Accordingly, the overall size of HM Treasury’s economic interest in the capital of the Company (which includes its holding of ordinary shares and B shares in the Company) will be reduced from approximately 78.3% to approximately 72.9%.
● The Placing Price was 330 pence per Placing Share. As a result, the proceeds from the sale of the Placing Shares will be £2,079,000,000.
● Citigroup Global Markets Limited, Goldman Sachs International, Morgan Stanley & Co. International plc and UBS Limited acted as Bookrunners in connection with the Placing.
● UKFI and HM Treasury have undertaken to the Bookrunners not to sell further shares in the Company for a period of 90 calendar days following the completion of the Placing without the prior written consent of a majority (by participation) of the
Bookrunners.
● N M Rothschild & Sons Limited acted as Capital Markets Adviser. Freshfields Bruckhaus Deringer LLP acted as legal counsel to UKFI in respect of English and US law.

Glen_Clark · 6 October 2015 at 10:36PM

gadgetmind wrote: »

Just like in a rights issue, so welcome to the real world.

No it isn't because in a rights issue those who don't take up the rights will have the rights sold and receive the proceeds. Wheras the public who don't participate in this will not.
So welcome to the real world

gadgetmind · 6 October 2015 at 10:44PM

Nick_C wrote: »

Surely those shares were sold on the open market as part of normal trading?

That's not how you do large purchases or large sales. You use a brokers to sniff around off market to see who's hungry to buy or sell as otherwise you risk distorting the market due to lack of liquidity.

Book building is how it's done, not large orders via the MMs.

grey_gym_sock · 6 October 2015 at 10:51PM

a large placing will always be at a discount. so why make large placings, when you could sell a few shares every day? yes, a continual seller will tend to depress the price a bit, but i suspect by less than the discount on the placing. when warren buffett is selling a share, doesn't he do it gradually?

i suspect that UKFI has gone for placings in order to earn some nice commissions for city firms handling the placings. regulatory capture in financial services - quelle surprise!

however that may be, osborne's give-away goes far beyond the discount required for a large placing. that's completely indefensible.

mickaveli2001 · 7 October 2015 at 1:39PM

I just bought x1000 this morning. I'm not expecting to keep these long term but I would like to see a lot less in circulation. I want to get rid of these by the end of the year, hoping (extreme optimism) to get enough to pay for a Christmas meal

[Deleted User] · 7 October 2015 at 2:37PM

Hi,

good luck, they're about 77p today, so if they hit their year high of 89p, you'll make £120 less dealing costs.

Enjoy your meal.

Thrugelmir · 7 October 2015 at 5:41PM

grey_gym_sock wrote: »

a large placing will always be at a discount. so why make large placings, when you could sell a few shares every day?

Goldman Sachs trade at the $10 to $15 million level in the largest blue chips. To shift £2 billion of stock ($3.5 billion) would take far too long. All the stock has to be sold onto to an end holder eventually. the stock overhand would depress the price.

With technology everybody knows what's going on. Days are gone when you could ring 10 different brokers and shift so much stock to each simultaneously without anyone realising at the time. Trades are published instantly now.

gadgetmind · 7 October 2015 at 6:15PM

Hence Book Building, which is going directly to large institutional investors to see who fancies a top up and what they'll pay in the price range you give. This establishes the price, and away you go.

We sometimes have to do this at the end of closed periods when we know a lot of employees are going to want to exercise options at the same time.

markwilkinson · 11 October 2015 at 4:42PM

I've registered an interest but it will depend on the share price at the time.

I'm happy to top up my holding. The bank seems to be slowly but surely getting back on the right track. For me, it's a decent bet for the long term hold.

veryintrigued · 30 October 2015 at 5:53PM

Not a great week for existing shareholders (after the Q3 statement).

Will this scare some off or make this share offer even more attractive to others?

Lloyds shares offer to the public

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