National Grid rights issue

irons2004

Hi, I'm getting very confused and would appreciate it if someone could explain this in simple terms.....

In Box A I have 84 existing shares
In Box B 33 new shares provisionally alloted
In Box C £110.55 payable for new shares

If I choose the cashless take-up, are some of the shares in Box B sold to fund monies due in Box C ? If so what price would they be sold at ? The Nat Grid Helpline told me they would be sold for the share price on the day (for example £4.80), but I'm not sure this is correct.

Really appreciate your help.

Thanks.

Jake'sGran

irons2004 wrote: »

Hi, I'm getting very confused and would appreciate it if someone could explain this in simple terms.....

In Box A I have 84 existing shares
In Box B 33 new shares provisionally alloted
In Box C £110.55 payable for new shares

If I choose the cashless take-up, are some of the shares in Box B sold to fund monies due in Box C ? If so what price would they be sold at ? The Nat Grid Helpline told me they would be sold for the share price on the day (for example £4.80), but I'm not sure this is correct.

Really appreciate your help.

Thanks.

No one would know the answer to your second question. It would be the best price the broker can get on the day plus his charges. Does the notification you have actually say "provisionally allotted" as the number of rights is dependent on the number of shares you hold now.

You can buy your rights at the price offered (£3.35). This is probably what I would do.

Or, you can sell your rights at market value and receive a cheque.

Or, you can sell some of your rights and use the proceeds to buy the balance of the ones not sold.

It is confusing but, if you can afford it right now the best option is to buy the rights especially as you have just a few. A well known broker on TV last week said they were worth buying.

C_Mababejive

My current position is that i intend to sell my rights to realise REAL cash. The price of the rights has slowly been trotting up and as i write,it stands at 165pence. I will sell and recoup as much cash as possible to replace the cash which has been stolen from me due to NGs Board of directors slick mismanagement.

Think of it this way..if someone stole money off you,would you trust them with more with some vague promise of jam tomorrow?

It isnt so bad if you only have a few shares but if you are into it big time,there is a lot at stake.

My view is that this company is over weight with debt, NG have not been specific enough about what they want this £3.2Bn for and they have not been clear as to what return they will generate from this investment.

Further to this ,we now have big players taking short positions on the stock which doesnt sound that good to me.


I not longer have confidence in the board of NG. They have misled the city and small investors and can no longer be trusted.

fullstop

I have decided to accept my allocation of new shares, the main reason is the board has committed to increase the dividend by 8% each year until March 2012.

C_Mababejive

fullstop wrote: »

I have decided to accept my allocation of new shares, the main reason is the board has committed to increase the dividend by 8% each year until March 2012.

I know..this seems a big catch for many but i wonder what will happen after that? Are many people just hanging on to this stock simply becuase of the divi? I suspect so.

There are about 17 other companies in the FTSE100 paying 5% and over and some of them seem like a safer bet to me with less downside.

I predict a board reshuffle very soon and the exit of at least one director. He will then be able to laud his apparent success at NG,take off with loads of wonga ££ and ensure that he doesnt dirty his hot little hands with the future consequences.

Have you checked the Annual report and spotted the levels of indebtedness yet?

http://www.nationalgrid.com/annualreports/2010/financial-statements/gaap-company-balance-sheet.html

edda

Over 94% of the rights issue was taken up:

http://www.sharecast.com/cgi-bin/sharecast/story.cgi?story_id=3513210

The rest were sold at £5 each, so those who 'did nothing' should get a payout (I think).

Shares priced about £5.03 this morning.

kostigovs

I have read and re-read this thread and am still struggling I think to offer advice to my daughter who has asked me to explain the rights issue.

She did not receive a letter from NG perhaps because she was notified through her share dealing account and did not take any action.

She currently holds 132 NG shares and was "allocated" 52 nil rights shares. As mentioned previously she took no action whatsoever in relation to the NG notification.

Where does she now stand as it appears to late to take any action?

Has she lost the 52 nil rights shares and merely holds her initial 132 shares?
Have the 52 nil rights been sold "on her behalf" and if so what was the selling price

kostigovs

Oops my original posting seems to have disappeared. My daughter asked me for some clarification on the NG situation and although I sent her the link to this thread she appears a wee bit confused . To tell the truth I am too so perhaps some kind soul will spell out the answers to my/her questions in words of one syllable.

She did not receive a letter as such but on her share dealing account-she holds 132 NG shares-she was "allocated" 52 nil rights shares.

My daughter has taken absolutely no action at all in relation to the rights issue and is now wondering what her current standing is.

Has she lost the nil rights allocation and her portfolio remains at 132 shares at whatever the current price
Have the 52 nil rights shares been sold "on her behalf" and if so at what price. If sold I presume the proceeds will appear in her Halifax share dealing service account?

Many thanks

kostigovs

Apologies, double post

Old_Wrinkly

kostigovs,
it is possible to delete your own posts e.g. if they have been posted in error.
Simply click on the edit button, and then choose the delete options.