National Grid rights issue

kostigovs

Old_Wrinkly wrote: »

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.

Thanks for that and noted for the future. Can you shed any light on my question

Old_Wrinkly

I think edda above (post #27) and some previous posts have it right, but I'm no expert in this area, so I think it best to leave it to those that are - there are many such regulars on this board.

Geebee

JeffersonGrif reported to [EMAIL="abuse@moneysavingexpert.com"]abuse@moneysavingexpert.com[/EMAIL]

edda

kostigovs wrote: »

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

If she's taken no action (or no one else has on her behalf) then it's too late to do anything now.

Her existing 132 NG shares will still be held - but be diluted. This means that as there are now more NG shares than before, she owns a lower proportion of the company (but, like all other private shareholders, the %age is insignificant).

Her rights to buy any more shares in this issue will have lapsed. Someone else has effectively bought them on the open market

She may receive a small cheque for any nett proceeds. This will be sent if more than £5 in total. The value per allocated new share (or right) is approx. £5 minus £3.35 minus selling cost (which I don't know). So she will get this value times 132.

HTH

kostigovs

edda wrote: »

If she's taken no action (or no one else has on her behalf) then it's too late to do anything now.

Her existing 132 NG shares will still be held - but be diluted. This means that as there are now more NG shares than before, she owns a lower proportion of the company (but, like all other private shareholders, the %age is insignificant).

Her rights to buy any more shares in this issue will have lapsed. Someone else has effectively bought them on the open market

She may receive a small cheque for any nett proceeds. This will be sent if more than £5 in total. The value per allocated new share (or right) is approx. £5 minus £3.35 minus selling cost (which I don't know). So she will get this value times 132.

HTH

Thanks for the explanation. That was my understanding

C_Mababejive

kostigovs wrote: »

Thanks for the explanation. That was my understanding

Thats correct.

It amazes me why Capita did not apparently allow electronic trading of the rights but rather,you had to send in bits of paper (PAL). This hardly allows shareholders to deal in real time and make the best of the situation.

edda

Decided not to go for the rights issue and have now got our cheque for the residue.

But .....

as the shares are in joint names, so is the cheque. We don't have a joint account that allows cheques to be paid in. (We have dividends paid directlty into a bank account but can't do this with capital payments).

Rang the registrars (Capita) who refuse to issue a cheque in one name (or 2 cheques for half the value each). :mad: Other registrars will do this - but not Capita.

Will have to open a joint account just to cash the cheque. :wall:

barak

Simplest thing might be to open a £1 min. savings account in joint names.

In general, if you hold anything in joint names, I've found it essential to have an account of some sort also in joint names. You can then deposit anything made payable to joint names, and subsequently make a withdrawal (signed by both holders, if necessary) to one name.

kipper21

I'm confused about the share price before and after the rights issue. I bought on 29/3/10 at £6.43 but the FT website says the share price was £5.77-£5.79 that day. Has the share price been retrospectively adjusted because of something to do with the rights issue?

onmywaytoretirement

For a write up on National Grid's dividend history and prospects, see: early-retirement-investor.com