Capita PLC sharesave plan sell or hold?

eranou

Hi

I've been saving into an employee shareplan with Capita PLC since Nov 2011 it is due to mature this November. the option price was set as 6.93 so with the current price being 11.62 i stand to make a profit,

The plan gives the option to either sell all shares or transfer them & I will receive share certificates,I'm in no need of the cash right now & would prefer it to remain invested.

I've been hunting through the scheme prospectus & T&Cs but cant find anything that says whats involved in holding the shares, would I still be holding them within the scheme or will they be transferred out & I'd have to put them in another wrapper?


If anyone knows what I can expect please let me know

Thanks

Seabee42

1) Capita is renowned for keeping costs low

2) As an employee I am sure you should know the Company better than some others.

3) There seems to be a current trend in Government that you can cut costs by outsourcing and if that continues it should suit Capita.

4) there are no guarantees.

5) what else would you do with it investment wise?

eranou

1 & 2 - spot on

3 - that's what I'm thinking too.

4 - understand

5 - would probably re-invest in my S&S ISA

If I take the transfer option would I be able to hold the shares in my ISA if I gave the provider the certificates?

Jules_79

Don't forget you're always taking a risk with sharesave that the value could drop to below what you paid in originally.


There are only 2 options on the portal - exercise and sell, and exercise and transfer (to certificated form). You could contact them and ask whether you can transfer into your ISA. I believe there may be a tax implication if you take the cert before transferring the shares into the ISA?


NB - if you do nothing, you will just get your savings back after the 6 month exercise window. So potentially you have 6 months to decide what to do with the shares.

eranou

Jules_79 wrote: »

Don't forget you're always taking a risk with sharesave that the value could drop to below what you paid in originally.


There are only 2 options on the portal - exercise and sell, and exercise and transfer (to certificated form). You could contact them and ask whether you can transfer into your ISA. I believe there may be a tax implication if you take the cert before transferring the shares into the ISA?


NB - if you do nothing, you will just get your savings back after the 6 month exercise window. So potentially you have 6 months to decide what to do with the shares.

Yeah I fully understand the risk involved but its unlikely that I wouldnt take up the option to buy all shares considering the current selling price compared to the option price.

I wont be exceeding my CGT allowance in the transaction

I've elected to take the transfer option then I'll send the certs to my ISA provider.