We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
Lloyds

The_MoneySavingKid
Posts: 361 Forumite


Ok,I hold shares in Lloyds at the moment,but I am wondering whether I would beable to purchase in the open offer at 38p on the 8th May, if I was to sell my current holding?
Or is it only available to those who hold shares at that point?
Is there any process I need to go through?
And,with the shares being at 84p (at time of writing),how would that affect the share price?
Or is it only available to those who hold shares at that point?
Is there any process I need to go through?
And,with the shares being at 84p (at time of writing),how would that affect the share price?
0
Comments
-
Where have you got the 8th May from?
If you sold your holdings without knowing what the record date is, you won't know whether you can buy or not.
Do you have an online broker? If so there will be a corporate action notification when the details are released which you will need to respond to if you want to take up any of your allowance.0 -
Where have you got the 8th May from?
If you sold your holdings without knowing what the record date is, you won't know whether you can buy or not.
Do you have an online broker? If so there will be a corporate action notification when the details are released which you will need to respond to if you want to take up any of your allowance.
sorry about the 8th May bit,it appears that is the 1 for 40 shares instead of a dividend.:o
Here,I found what I was on about:
Capital restructuring – replacement of existing preference shares
The Group has today agreed with HM Treasury that on implementation of the Asset Protection Scheme the £4 billion of preference shares HM Treasury holds (together with accrued dividends) will be replaced with new ordinary shares. Eligible Lloyds Banking Group plc ordinary shareholders (Shareholders) will be able to apply to subscribe for approximately £4 billion of new ordinary shares pro rata to their existing shareholdings at a fixed price of 38.43 pence per share. This represents an 8.5 per cent discount to the closing price on 6 March 2009. These new ordinary shares will be offered to Shareholders and new investors on the same basis as the Placing and Open Offer in November 2008. The ordinary share offer is fully underwritten by HM Treasury on substantially the same fee basis as the Placing and Open Offer conducted in November 2008. There will be an excess application facility as in November pursuant to which Shareholders may apply for additional new shares in the ordinary share offer. The proceeds of the issue will be used to redeem the preference shares held by HM Treasury.
So when does that take place?
http://www.lloydsbankinggroup.com/media/pdfs/investors/2009/2009Mar7_LBG_Asset_Protection_Scheme.pdf0 -
The_MoneySavingKid wrote: »sorry about the 8th May bit,it appears that is the 1 for 40 shares instead of a dividend.:o
Here,I found what I was on about:
Capital restructuring – replacement of existing preference shares
The Group has today agreed with HM Treasury that on implementation of the Asset Protection Scheme the £4 billion of preference shares HM Treasury holds (together with accrued dividends) will be replaced with new ordinary shares. Eligible Lloyds Banking Group plc ordinary shareholders (Shareholders) will be able to apply to subscribe for approximately £4 billion of new ordinary shares pro rata to their existing shareholdings at a fixed price of 38.43 pence per share. This represents an 8.5 per cent discount to the closing price on 6 March 2009. These new ordinary shares will be offered to Shareholders and new investors on the same basis as the Placing and Open Offer in November 2008. The ordinary share offer is fully underwritten by HM Treasury on substantially the same fee basis as the Placing and Open Offer conducted in November 2008. There will be an excess application facility as in November pursuant to which Shareholders may apply for additional new shares in the ordinary share offer. The proceeds of the issue will be used to redeem the preference shares held by HM Treasury.
So when does that take place?
http://www.lloydsbankinggroup.com/media/pdfs/investors/2009/2009Mar7_LBG_Asset_Protection_Scheme.pdf
No dates have been released yet. Lloyds have not yet published the prospectus so all guesswork at the moment.0 -
Lloyds are creating more new shares faster than Zimbabwe prints new banknotes. They'll be giving them away free in Cornflakes packets soon enough.
Indeed, if it isn't ignored there's an outside chance the Government ownership of the bank could remain at less than 50%.0 -
its an open offer - I'm not sure if existing shareholders have any more right to buy the shares than anyone else0
-
-
Are you saying anyone can buy these shares?
thats my understanding
How does that work then?
presumably you just apply
And if that is the case why is the share price still relatively high compared to the offer price ?
good question - presumably because there is so much demand for them, that demand outstrips supply. That, or maybe market anticipates the offer price will be raised ?
all the above assumes it really is an open issue, and that existing shareholders have no pre-emption rights. I suspect they will.0 -
Fairly sure the Government have agreed to underwrite at 38.5p a share as part of the Asset Protection Scheme. That part can't be raised.
Looking at this one with great interest.
The wider they can cast the net for buyers, the less likelihood of them being majority owned by HM Government.0 -
its an open offer - I'm not sure if existing shareholders have any more right to buy the shares than anyone else
Open offer = existing shareholders given opportunity to buy additional shares at a fixed price. Unlike a rights issue, no rights to sell so you either take up, or dont. there wont be any lapsed rights proceeds as with a rights issue.
Confusion for the previous poster may be that in a rights issue a non-existing (?) shareholder can buy rights on the market with the intention to then pay the offer price to get the new shares. In this way someone who isnt an existing shareholder can benefit from the rights issue (although obviously not as much benefit as an existing shareholder will get)0
This discussion has been closed.
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 348.3K Banking & Borrowing
- 252.1K Reduce Debt & Boost Income
- 452.4K Spending & Discounts
- 240.9K Work, Benefits & Business
- 617.1K Mortgages, Homes & Bills
- 175.6K Life & Family
- 254.1K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 15.1K Coronavirus Support Boards