AA Shares

EachPenny

P.Pea wrote: »

My wife had some shares off the AA when it was floated. I told her not to sell them as they would make a few pounds over the years. She had to exchange them for Centrica shares when Centrica purchased the AA. They gave her 123 shares. As I understand it 123 share multiplied by the price per share is now worth £22,000+ with the initial investment being £155 or there abouts? Is this correct? Or are we just misunderstanding the share system.

Maybe I'm having a 'moment', but my recollection is different. The AA wasn't 'floated' it was a mutual organisation up to the point that Centrica purchased it. Qualifying AA members were given a windfall payment of circa £240. So there were no 'shares' for members to purchase, nor to exchange for Centrica shares. Whether or not it was possible to opt to have Centrica shares in lieu of the £240 I don't remember, but it would of course have been possible to take the £240 and then buy Centrica shares by other methods.

P.Pea wrote: »

Not a great investment then. After nearly 15 years...

Well if you took the £240 windfall and invested it and ended up with less money then yes, not a great investment.

But as the windfall was 'free' money to start with then the only way of seeing it as not a 'great investment' is in terms of the increased charges AA members have probably been paying to the non-mutual company it became.