National Grid rights issue

steveksullivan

A piece of advice......

If you need any help with this, come here to MSE......

DONT BOTHER WITH THE NATIONAL GRID HELPLINE !

Just spent a very frustrating ten minutes on the phone to them .....my question was

'Where can I find out the price that the Nil paid options are trading at' (and I think I speak reasonable english ......)

The answer ' I dont know I'll find out for you' ......(three minute pause)...... answer:'you get two shares for every five you own' (!!!!!)

Me: yes I know that ..... I want to know a website or somewhere where I can see the price the options are trading at'

Helpline: We dont know the current price ......

Me: No, I understand that. I wondered if you could direct me to a website or somewhere that DOES have that information.....

Helpline : Oh !!! you can try the London papers.....

Me: ........ I dont live in London .......

Helpline : (incredulous....)You dont live in London ...?!?!!?!?

Me: ......Never mind .... Bye .....


......there was more but I'll spare you too much detail....

Thanks to eveyone whos responded and I think i've found the prices on the Stock exchange's own website - I'm assuming that the last two shares listed are the nil-paid and fully-paid options (NP and FP)

fullstop

Just checked my account, have not made any move yet but have NG shares as well as now NG N which are priced at about 151p and latest price for them is about 131p sowing a paper loss so far of 13.62%

Will probably be taking up my rights as they have a decent yield.

steveksullivan

can this be right - cut and paste from the London Stock Exchange website......

Why would the price of the fully paid options have dropped so dramatically today??

NG.FNATL GRID FP GBX180.50 -137.75 -43.28
NG.NNATL GRiD NP GBX131.25 -3.25 -2.42


Sorry that's not very clear......dropped 137.75 pence to 180.5.....i.e. down 43.28% ????

sabretoothtigger

I think you just need to watch nil paid

Sceptic001

Rollinghome wrote: »

Personally, I would always wait until the last few days if you decide to send them your cheque. There's no advantage in being early and there can be considerable advantage in delaying if something unforseen emerges at the last minute. In the HBOS rights issue some while back some people actually paid more for exercising the rights than they could have bought shares in the market.

This is excellent advice. I still remember the BP share sell-off (1987?) when the market fell sharply just before the closing date and those who held off where able to buy BP shares in the market at a substantial discount to the offer price.

HMRC100

Sceptic001 wrote: »

This is excellent advice. I still remember the BP share sell-off (1987?) when the market fell sharply just before the closing date and those who held off where able to buy BP shares in the market at a substantial discount to the offer price.

But with the BP sell-off the shares were paid in instalments, bonus shares were paid after a period of time and no dealing costs to pay so buying in the sell-off with intention to keep long-term was at least similar to the market price depending on the number of shares purchased ie not "a substantial discount" as you quote.

C_Mababejive

OK let me see if i have this right..

Just checked and the current NG.N price is £1.37

So for that price,i am buying the right to buy one share at £3.35...correct..?

This would put the value of that share at 1.37+3.35=4.72 compared to the current price of NG shares of £5.00..an apparent profit of 27p although not quite as the NG shares are now ex divi

If you already own NG shares though,is this a no brainer..?

I guess it depends how much the shares will be trading at once the 900 odd million new shares enter the market..any guesses?

Maybe it would be better to take jam today,let your rights lapse and collect some cash?

Any thoughts?

sabretoothtigger

NG shares are now ex divi

as of 2nd June

tiger1

Because i hold a number of National Grid Shares in a self select Isa with The Halifax I have been prompted to 'take up my rights'. One option of which is to purchase further shares under the rights issue.

However, I am unable to do this as I have used my annual Isa allowance for this year.
I assume then, that all I can do is follow Option 3 and sell all my Nil Paid Rights?

Is this my only option in my (and assumingly, many other peoples) circumstances?

Thanks for any information!

Jake'sGran

It was suggested on Working Lunch a week or so ago that it would be a good idea to buy them. I have 334 shares which cost nothing as I acquired them after buying a single co PEP (BG) a long time ago. In addition I have 158 NG shares bought separately for the yield. I will probably buy the two lots of rights as, untimately, the return is likely to be better than anything I can get in any savings account.