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Centrica Rights Issue - Tail Swallowing
ddo1997
Posts: 1 Newbie
Hi,
I am searching for information on how to take the cashless rights issue / tail swallowing option with my Centrica Share option. I own 10,000 Centrica shares, under the 3 for 8 share rights issue I have the option to buy 3,750 shares at the option price of £1.60p. I would like to sell a proportion of my rights to fund purchase of part of my option.
If I do nothing and the current NIL Paid Rights price remains unchanged (unlikely) at £0.74p, I will receive a cash out option of (£0.74p x 3,750) = £2,775. If however, I sold 2,565 of my rights options I would achieve (£0.74p x 2,565) = £1,898. This sum would allow me to buy 1,185 options at £1.60p (£1,898 / £1.60p = 1,185).
The shares holding is currently held in a flexishare account with Equiniti who do not offer the cashless option take up or tail swallowing. Is it possible for me to complete the cashless option / tail swallowing with another stockbroker? If so how do I progress this further?
Thanks in advance.
I am searching for information on how to take the cashless rights issue / tail swallowing option with my Centrica Share option. I own 10,000 Centrica shares, under the 3 for 8 share rights issue I have the option to buy 3,750 shares at the option price of £1.60p. I would like to sell a proportion of my rights to fund purchase of part of my option.
If I do nothing and the current NIL Paid Rights price remains unchanged (unlikely) at £0.74p, I will receive a cash out option of (£0.74p x 3,750) = £2,775. If however, I sold 2,565 of my rights options I would achieve (£0.74p x 2,565) = £1,898. This sum would allow me to buy 1,185 options at £1.60p (£1,898 / £1.60p = 1,185).
The shares holding is currently held in a flexishare account with Equiniti who do not offer the cashless option take up or tail swallowing. Is it possible for me to complete the cashless option / tail swallowing with another stockbroker? If so how do I progress this further?
Thanks in advance.
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On Monday contact a stockbroking firm and ask them.0
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