Advice about some shares please

Metermaid

Hi, in 1997 we bought £500 of shares. We had a letter some years ago converting these, they were penny shares? Sorry I don't understand this stuff as it was a one off purchase on a friends advice supposed to make a quick profit which didn't materialise!. Anyway, essentially we thought they were pretty much worthless and forgot about them.

We've just received a letter from Capita saying the company have been trying to trace us as we are due a dividend of several thousand pounds on these shares.

They site 15% admin fee to have the money transferred to us in 30 days. They have quoted the company, share number etc - does this sound ok - obviously I'm excited at this news and 15% seems fine to obtain funds I didn't know we're due, but should I look at cashing the shares directly? The company is based in Ireland and Capita have included their contact details.

Any advice from those more familiar with shares than me would be gratefully received!

MarkFromCornwall

Metermaid wrote: »

Any advice from those more familiar with shares than me would be gratefully received!

I'm no expert but this sounds like it could be a scam. I'd suggest you contact Capita, using contact details on their web-site, not any contact details in the letter. Don't pay any admin fee in advance. If it's genuine they will deduct the admin fee from the thousands of pounds they send you, not require you to pay it before you receive anything. If you post the name of the firm others here will probably be able to tell you more.

Metermaid

Thanks for your reply, sorry I worded my post badly, the admin fee is to be deducted from the dividend, Capita haven't asked for any money up front

MarkFromCornwall

That sounds much more promising, but still make sure it really is Capita that you're dealing with. You describe the payment as a dividend so presumably you are still the owner of the shares, ie. you aren't selling them.

bigfreddiel

It's a scam, sorry to be the bearer of bad news. Capita would never ask for money up front. You own the shares so the money is yours.

Please tell us the company, when you bought them and for how much.

Cheers fj

MarkFromCornwall

OP, please read this about checking that you are really dealing with Capita.

http://www.fca.org.uk/news/warnings/capita-registrars-group-clone

Metermaid

Will read that through, thanks for,link.

Just to reiterate again though, the letter says the admin fee will be deducted before the payment is sent to us....they are not requestin money from us.

Yes we own the share they are in DragonOil

Pincher

Penny share implies it was listed on AIM, it's probably de-listed.

Capita is probably acting for a de-listed company, which obviously is handled manually, so 15% is just what they deem appropriate. Hopefully, the 15% includes converting the dividend from Euros to Sterling, otherwise you will have to convert it at extra expense.

Pinkle

bigfreddiel wrote: »

It's a scam, sorry to be the bearer of bad news. Capita would never ask for money up front. You own the shares so the money is yours.

Please tell us the company, when you bought them and for how much.

Cheers fj

Well, the OP has said (twice) the fee will be deducted from any payment, not required in advance.

OP, please tell us the name of this marvellous company!! [EDIT - you posted while I was writing this - OK, DragonOil - Google "dragon oil share price history"]. You invested £500 and you are now receiving a dividend of thousands. If so, your investment must be worth £50,000 at least. Which sounds too good to be true. And if it sounds too good to be true...

But are you sure it is a dividend? If it was shares you bought for £500 and that company has now been taken over and you are getting a few thousand for those shares, that would be more believable.

But tell us the company's name, and roughly when you acquired the shares, and it's easy for us to work out whether it's kosher or it's a scam.

Metermaid

The company DragonOil has been taken over by Emirates National Oil company, I mistakenly used the term dividend, re-reading the letter it's termed as 'unclaimed entitlement' as a former DragonOil shareholder

richyg

Hi,

It probably isnt a scam. Companies are charged with communicating with shareholders re distributions etc for the lifetime of share ownership.

Sometimes after merger where you may have ignored paperwork years afterwards relating to mergers etc companies like Capita are charged with communicating with long forgotten shareholders (I guess they may also bid for this business).



Just be careful and get the amounts clarified as to percentage fee and not 15% but a minimum £100 if you only hold 1 share worth £2.50

R.