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  • FIRST POST
    • P.Pea
    • By P.Pea 4th Oct 17, 3:22 PM
    • 7Posts
    • 0Thanks
    P.Pea
    AA Shares
    • #1
    • 4th Oct 17, 3:22 PM
    AA Shares 4th Oct 17 at 3:22 PM
    My wife had some shares off the AA when it was floated. I told her not to sell them as they would make a few pounds over the years. She had to exchange them for Centrica shares when Centrica purchased the AA. They gave her 123 shares. As I understand it 123 share multiplied by the price per share is now worth £22,000+ with the initial investment being £155 or there abouts? Is this correct? Or are we just misunderstanding the share system.
Page 1
    • greatkingrat
    • By greatkingrat 4th Oct 17, 3:25 PM
    • 69 Posts
    • 74 Thanks
    greatkingrat
    • #2
    • 4th Oct 17, 3:25 PM
    • #2
    • 4th Oct 17, 3:25 PM
    The share price is quoted in pence not pounds. So 123 shares would be worth around £220, not £22000!
    • walkonsand
    • By walkonsand 4th Oct 17, 3:27 PM
    • 4 Posts
    • 11 Thanks
    walkonsand
    • #3
    • 4th Oct 17, 3:27 PM
    • #3
    • 4th Oct 17, 3:27 PM
    Centrica shares are at £1.80 approx per share at the moment, so it'd be £220 or so. The price of shares are in pence rather than pounds sadly
    • P.Pea
    • By P.Pea 4th Oct 17, 3:42 PM
    • 7 Posts
    • 0 Thanks
    P.Pea
    • #4
    • 4th Oct 17, 3:42 PM
    • #4
    • 4th Oct 17, 3:42 PM
    Thanks guy's it did sound somewhat crazy...
    • P.Pea
    • By P.Pea 4th Oct 17, 3:43 PM
    • 7 Posts
    • 0 Thanks
    P.Pea
    • #5
    • 4th Oct 17, 3:43 PM
    • #5
    • 4th Oct 17, 3:43 PM
    Not a great investment then. After nearly 15 years...
    • frugalmacdugal
    • By frugalmacdugal 4th Oct 17, 3:54 PM
    • 6,172 Posts
    • 5,296 Thanks
    frugalmacdugal
    • #6
    • 4th Oct 17, 3:54 PM
    • #6
    • 4th Oct 17, 3:54 PM
    Hi,

    it gets worse!

    Seems Centrica sold AA in 2004, and AA shares today are about 163.00p. so only worth about £200.
    Y'all take care now.
    • eskbanker
    • By eskbanker 4th Oct 17, 4:05 PM
    • 5,889 Posts
    • 5,844 Thanks
    eskbanker
    • #7
    • 4th Oct 17, 4:05 PM
    • #7
    • 4th Oct 17, 4:05 PM
    Hi,

    it gets worse!

    Seems Centrica sold AA in 2004, and AA shares today are about 163.00p. so only worth about £200.
    Originally posted by frugalmacdugal
    It doesn't get worse for OP's wife though - the sale of AA by Centrica wouldn't mean that a Centrica shareholder (whose shares happened to have originated from AA ones) would be somehow forced to take AA shares again, so there's no reason why OP's wife would be affected in any way by the 2004 demerger!
    • frugalmacdugal
    • By frugalmacdugal 4th Oct 17, 4:08 PM
    • 6,172 Posts
    • 5,296 Thanks
    frugalmacdugal
    • #8
    • 4th Oct 17, 4:08 PM
    • #8
    • 4th Oct 17, 4:08 PM
    HI,

    It doesn't get worse for OP's wife though - the sale of AA by Centrica wouldn't mean that a Centrica shareholder (whose shares happened to have originated from AA ones) would be somehow forced to take AA shares again, so there's no reason why OP's wife would be affected in any way by the 2004 demerger!
    Originally posted by eskbanker
    I was meaning the slight drop in value because of share price, 163.00p rather than 180.00p
    Y'all take care now.
    • eskbanker
    • By eskbanker 4th Oct 17, 5:04 PM
    • 5,889 Posts
    • 5,844 Thanks
    eskbanker
    • #9
    • 4th Oct 17, 5:04 PM
    • #9
    • 4th Oct 17, 5:04 PM
    HI,



    I was meaning the slight drop in value because of share price, 163.00p rather than 180.00p
    Originally posted by frugalmacdugal
    There is no "drop in value because of share price, 163.00p rather than 180.00p", as those share prices relate to two different companies, so I still don't understand your 'it gets worse' comment! What gets worse and for whom?

    OP's wife's 123 Centrica shares (held since 1999) will still be valued at 180p per share and won't be affected in any way by the market price of shares in the post-2014 iteration of the AA (which are unrelated to those in the entity floated in 1999 anyway)....
    • frugalmacdugal
    • By frugalmacdugal 4th Oct 17, 5:13 PM
    • 6,172 Posts
    • 5,296 Thanks
    frugalmacdugal
    Hi,

    ok, , I get it.

    I was thinking that OP's wife's shares had reverted back to AA shares.

    I'll go sit in the corner.

    Y'all take care now.
    • AndyT678
    • By AndyT678 4th Oct 17, 6:18 PM
    • 729 Posts
    • 995 Thanks
    AndyT678
    Not a great investment then. After nearly 15 years...
    Originally posted by P.Pea
    What's happened to the dividends? Are you including the value of those in the assessment above?
    • EachPenny
    • By EachPenny 24th Oct 17, 10:17 AM
    • 3,264 Posts
    • 6,004 Thanks
    EachPenny
    My wife had some shares off the AA when it was floated. I told her not to sell them as they would make a few pounds over the years. She had to exchange them for Centrica shares when Centrica purchased the AA. They gave her 123 shares. As I understand it 123 share multiplied by the price per share is now worth £22,000+ with the initial investment being £155 or there abouts? Is this correct? Or are we just misunderstanding the share system.
    Originally posted by P.Pea
    Maybe I'm having a 'moment', but my recollection is different. The AA wasn't 'floated' it was a mutual organisation up to the point that Centrica purchased it. Qualifying AA members were given a windfall payment of circa £240. So there were no 'shares' for members to purchase, nor to exchange for Centrica shares. Whether or not it was possible to opt to have Centrica shares in lieu of the £240 I don't remember, but it would of course have been possible to take the £240 and then buy Centrica shares by other methods.

    Not a great investment then. After nearly 15 years...
    Originally posted by P.Pea
    Well if you took the £240 windfall and invested it and ended up with less money then yes, not a great investment.

    But as the windfall was 'free' money to start with then the only way of seeing it as not a 'great investment' is in terms of the increased charges AA members have probably been paying to the non-mutual company it became.
    "In the future, everyone will be rich for 15 minutes"
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