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First Bus Rights Issue
Bazofts_Revenge
Posts: 299 Forumite
Today First Bus cancelled this years final dividend and called a rights issue.
FirstGroup said that the proceeds from the £615 million rights issue, which will give investors who already hold shares in the company the right to buy additional shares at a discount of 62%
My question is if you hold your shares in a nominee account such as I do in an ISA will I still be able to have the opportunity to get some of the discounted shares? I don't see how they would know. Could they go to the broker and I buy through them?
FirstGroup said that the proceeds from the £615 million rights issue, which will give investors who already hold shares in the company the right to buy additional shares at a discount of 62%
My question is if you hold your shares in a nominee account such as I do in an ISA will I still be able to have the opportunity to get some of the discounted shares? I don't see how they would know. Could they go to the broker and I buy through them?
Solar PV cost £5760 (15/03/13)
FIT inc + Electricity saved £3746 (65% Paid back) Tax free
Last update 30/09/17
FIT inc + Electricity saved £3746 (65% Paid back) Tax free
Last update 30/09/17
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Comments
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You would need to inform your broker that you wish to participate and how many rights you wish to subscribe to. The broker will then handle it for you. I would expect any decent broker to allow you to do this, although some may charge an admin fee.Faith, hope, charity, these three; but the greatest of these is charity.0
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Bazofts_Revenge wrote: »My question is if you hold your shares in a nominee account such as I do in an ISA will I still be able to have the opportunity to get some of the discounted shares?
I've bought into new issues and rights issues with both Hargreaves Lansdown and (more often) BestInvest. It's usually just a case of filling in the form they send or firing off an email.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
Yes. Its called a "Rights" issue for a reason. If you own the shares, then you have the right. Being a nominee makes no difference. Basically they have to offer you the chance to participate. You will need cash in your account to buy the new shares. Ive never been charged a fee.
If they dont offer you the chance to participate, or charge you a fee, then I would look to transfer your account elsewhere.
Out of interest, who is your broker?0 -
Nicholas-bloody-Parsons wrote: »Out of interest, who is your broker?
Now that would be telling...
Thanks for all the reassurance, I am sure my broker will contact me.
I will wait to see what the offer price is. They are already trading at a good discount but nowhere near the offer price.Solar PV cost £5760 (15/03/13)
FIT inc + Electricity saved £3746 (65% Paid back) Tax free
Last update 30/09/170 -
Have they said when the it goes Ex-rights?
The rights issue will drag the share price down a bit until this is out of the way.
I might interested in a few, as a speculative buy after they go ex-rights.0 -
Timetable and much more here.
http://boards.fool.co.uk/first-group-rights-issue-12811471.aspx?sort=whole#12811471I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
Is there a maximum amount of new shares I can apply for?
If so is it based on my current shareholding which is just 481 shares?Solar PV cost £5760 (15/03/13)
FIT inc + Electricity saved £3746 (65% Paid back) Tax free
Last update 30/09/170 -
Bazofts_Revenge wrote: »Is there a maximum amount of new shares I can apply for?
If so is it based on my current shareholding which is just 481 shares?
Yes, that is the whole point of the right issues! You get a specific amount of shares to buy because you hold a specific amount of shares. If you actually read the announcement, you would know that it is 3 for 2 right issue meaning if you got 481 shares, you can buy up to 721 shares I believe.
Cheers,
Joe0 -
Thanks Joe I read the article and 'assumed' what you said but I've learnt not to assume anymore but to find out for definite. In that case I may buy a few more before the Ex-rights date.Solar PV cost £5760 (15/03/13)
FIT inc + Electricity saved £3746 (65% Paid back) Tax free
Last update 30/09/170 -
Bazofts_Revenge wrote: »Now that would be telling...
Bit off when someone has been so helpful :rotfl:0
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