LLoyds Open (Exchange) Offer NOV 09

rob_32002

Anyone heard any details ?

IE what the cost of accepting the LLoyds Call ?

Best I could dechiper was

0.34 P per existing share @0.6213.



£21.08 cost to buy based on 100 eq.

Anyone agree / disagree ?

Above is interesting as the speculation on post offer price is 0.56.

cardsharps

yet more money down the plughole. How many times now is it that Lloyds have got out the begging bowl with their open offers/right issues? And how much longer before the next one?

cloud_dog

Rob, one perspective with rights issues is that if you don't take up the offer your holding will be dilluted without any benefit to you, whereas if you take it up at least your invesment will remain par with your original investment (if this makes sense).

Me, I think Lloyds/RBS will be around for a long time and likely be a strong bank at some point in the future but..... It all comes down to your own situation / circumstances.

rob_32002

Hi - thanx for the replies ;

I WILL take up my full allocation for sure ( to ensure my stake remains similar due to the dilution if I dont as you state).

I just wanted to get an idea on how much funds I will need as I will only have a few weeks to raise the necessary capital to buy and then get it into the D/A. So was more interested in if anyone thought the calculation was in the right ball park for 100 eq.

Any ideas ?

I think they will recover 1-3 year inv horizon.

anna42hmr

just a question how does the share offers for a company work if you bought via a broker or online share dealing account?? ie mine were bought via halifax share builder so will they send me the offer or will lloyds send it direct??

Biggles

anna42hmr wrote: »

just a question how does the share offers for a company work if you bought via a broker or online share dealing account?? ie mine were bought via halifax share builder so will they send me the offer or will lloyds send it direct??

If you hold the shares in a nominee account, the broker will contact you when the terms are known.

But, like the OP, you'll need to wait and see what the terms are (and what the share price then is) before deciding.

cashbackproblems

I think this will be a positive RI as the cash will be used to stop deepening governments stake/APS reliance which is what we need to be able to not only get them off our backs but also stop the EU interfering like they have in the past week with Lloyds and RBS.

The ex ri date to be in by to qualify for the shares in 20th November and imo in the run up to this date the sp will keep increasing so if you want to sell out then is the time, post dilution the sp will fall quite sharply before recovering. Im preparing to pay 50p for 1 share for each share owned so so if u bought 1k at 100p you need £500. Other people are saying it'll be a 2 for 1 at 30/40p...!

Dont forget Lloyd have also been banned from paying any divis for 2 yrs, if thts important to you ud stick it on Barclays before next tues when results r out and it'll rocket to 400p.

sabretoothtigger

What did lloyds tsb do with the last load of money they got off the general public?

Paid off debt, reduced ongoing costs and improved share value. I think the last rights were 36p and market price was 66p at that time so they have gone up.

Overall its hardly blue skies but the motives behind this capital raising are positive.
The APS was incredibly expensive, its far better for everyone if lloyds can actually handle their own debt for better or worse it'll cost less and again raise the worth of the shares hence the rights are worth doing




http://www.ftadviser.com/InvestmentAdviser/Investments/News/article/20091103/3256e08a-c87c-11de-8483-00144f2af8e8/IA-p20-091109-Buxton.jsp




Lloyds can pay dividends, there was an old rule about cash pay outs which does not apply any more afaik. Regardless of this they paid out a scrip or share dividend last spring, it was about 2% of the market price at the time

cashbackproblems

sabretoothtigger wrote: »

Paid off debt, reduced ongoing costs and improved share value. I think the last rights were 36p and market price was 66p at that time so they have gone up.

Overall its hardly blue skies but the motives behind this capital raising are positive.
The APS was incredibly expensive, its far better for everyone if lloyds can actually handle their own debt for better or worse it'll cost less and again raise the worth of the shares hence the rights are worth doing




http://www.ftadviser.com/InvestmentAdviser/Investments/News/article/20091103/3256e08a-c87c-11de-8483-00144f2af8e8/IA-p20-091109-Buxton.jsp




Lloyds can pay dividends, there was an old rule about cash pay outs which does not apply any more afaik. Regardless of this they paid out a scrip or share dividend last spring, it was about 2% of the market price at the time

I picked this up from iii, its not been completely ruled out, but seems unlikely they will.

As a result of the expected state aid remedies referred to in paragraph 5 of this letter, the Company expects to be prevented from making discretionary (contractually deferrable or waivable) coupon and dividend payments on hybrid capital securities or making voluntary calls on such securities from 31 January 2010 until 31 January 2012. Should the Group be prevented from making such payments, the Company will be restricted by the terms of such hybrid capital securities from paying dividends on its Ordinary Shares for the duration of such restrictions. However, the Board intends to resume dividend payments on its Ordinary Shares as soon as market conditions and the financial position of the Group permit, subject to the expiry of the restrictions outlined above. See also the risk factor described in section 1.5 of Part II ("Risk Factors") of the Rights Issue Prospectus.


What happens if youv bought Lloyd in your ISA stock account and you are at your annual limit and cant/dont want to sell any other shares in there, how do you take up your rights?

sabretoothtigger

Yea I might have got it wrong, the EU ruling might have altered things again and I was talking about uk government


lloyds and barc recommended here

http://www.telegraph.co.uk/finance/markets/questor/6496141/Lloyds-investors-should-take-up-rights-in-turbulent-time.html



Rights should fit in an ISA I would hope, its not a new purchase and you arent increasing your percentage holding in the company

the Company will be restricted by the terms of such hybrid capital securities from paying dividends on its Ordinary Shares for the duration of such restrictions.

bonds holders are being smacked on the nose for supporting such reckless companies so this figures, no div then

Lloyds/RBS earnings hits to weigh for years
Shareholders in the UK’s two bailed-out banks haven’t been wiped out. But their returns are being savaged by forced disposals plus mammoth, expensive and dilutive capital increases. Lloyds will recover faster. But even by 2012, RBS may be earning barely a few pence a share.
Read More

rob_32002

The Rights Issue comprises the offer of 36,505,088,579 New Shares at an Issue Price of 37 pence on the basis of 1.34 New Shares for every 1 Existing Ordinary Share held at the Record Date. The expected gross proceeds of the Rights Issue receivable by Lloyds Banking Group total £13,506,882,774.