RSA Rights issue

Whirlybird65

Can anyone on here explain the 'in's and out's' of the RSA rights issue.... in very simple terms.
I have the option to purchase 2000.

Many thanks

Thrugelmir

Do you regard RSA an investable business at the current time? Or are they there better alternatives available.

Whirlybird65

Hi

I bought them as an investment and not as a trader, so I plan to hold them long term.
But i am not sure of the implications with the new rights issue.

barak

Whirlybird65 wrote: »

Can anyone on here explain the 'in's and out's' of the RSA rights issue.... in very simple terms. I have the option to purchase 2000. Many thanks

Assuming you have the £1120 available and you are sure you want to be a long term holder of RSA, then in principle there is no reason not to take up your rights.....subject, of course, to all the other questions about the risks of equity investment.

Briefly - taking up your rights means that you will still hold the same proportion of the share capital of RSA, whereas letting them lapse will mean that you will in future have a smaller proportion.

For what it's worth, I have a widely spread portfolio of which RSA is a very small part and I have already applied to take up my rights.

Glen_Clark

I hold 6000 RSA shares direct:( but am away from home for a few weeks so haven't picked up my mail. Does it say what will happen if you just do nothing?

mgk

Whirlybird - according to my Nominee account default is they will sell your rights and you;kk get the proceeds

Thrugelmir

Whirlybird65 wrote: »

Hi

I bought them as an investment and not as a trader, so I plan to hold them long term.
But i am not sure of the implications with the new rights issue.

Buying and holding is fine. Though investments still need to be monitored. Holding on to a bad investment in the hope of a bounce back in share price is a cardinal sin committed by many.

Glen_Clark

Thrugelmir wrote: »

Holding on to a bad investment in the hope of a bounce back in share price is a cardinal sin committed by many.

So is selling a good investnent thats only going through a temporary setback

Glen_Clark

mgk wrote: »

Whirlybird - according to my Nominee account default is they will sell your rights and you;kk get the proceeds

Thanks. Thats been the case with the direct holdings I have too - just wanted to check as I am not ready to go home yet. (Am touring the highlands in a motorhome and enjoying the unusually good weather )

barak

Glen_Clark wrote: »

Thanks. Thats been the case with the direct holdings I have too - just wanted to check as I am not ready to go home yet. (Am touring the highlands in a motorhome and enjoying the unusually good weather )

Glen Clark - Just in case it's of interest, I thought I'd let you know that it's not impossible for you to take up your rights without going home. Uniquely, in my experience, the Provisional Allotment Letter does NOT require the signature of the shareholder. What it does require is a cheque from the shareholder's own bank account. So if somebody has access to your mail, and you have your cheque book with you, you could take up your rights by sending a cheque home.

The offer is 3 for 8 existing shares, which for a holding of 6,000 would be 2,250 at 56p amounting to £1,260.00. This amount is clearly stated on the PAL. Applications must be received by 9th April.
http://www.rsagroup.com/rsagroup/en/investor-relations/rights-issue-2014#.UzVxeHa0NvU

jwhxch

Ok, not sure if I've made a boob, but had 559 shares allocated, which I inadvertently sold ... does that mean I will be charge 56p for each one on the 1/4/2014 or by selling them I've decided not to take up the offer. If I've made a mistake ... can I purchase 559 again and then say don't want them. Was not stopped from selling them on selftrade and not clear how I indicated I was not going to through bad money after worse....