Selling shares

Caduta_Massi

Hi, can anyone out there explain my options re the following. I have inherited a small amount of shares in a tech company, the shares are registered in my name, it has always been my intention to sell them, I am neither a trader nor dealer, the company in question is about the be acquired, there has been an offer that has been accepted by the company in question and there will now be a shareholder vote re the sale. Assuming that the shareholders agree to the sale should I just hang on to my shares until the sale goes through at the agreed price? If so will my shares sell as part of the acquisition process automatically or do I have to sell them independently. As you can probably tell, this is something that I have very little knowledge of. Thanks in advance.

Apodemus

If there is to be a shareholder vote, then I would imagine that they will need to send you the details of the sale, so that you can cast an informed vote on whether the deal on offer is acceptable.

The details will indicate whether this is a straight cash sale (where you receive cash for your current shares, but no shares in the take-over company) or a an offer of new shares in the takeover company in exchange for your existing company shares.

Biggles

Which tech company is it?

Caduta_Massi

Apodemus wrote: »

If there is to be a shareholder vote, then I would imagine that they will need to send you the details of the sale, so that you can cast an informed vote on whether the deal on offer is acceptable.

The details will indicate whether this is a straight cash sale (where you receive cash for your current shares, but no shares in the take-over company) or a an offer of new shares in the takeover company in exchange for your existing company shares.

Thanks for the info Apodemus, I do have a vote and it is a straight cash sale, I assume that as they have my bank details they will simply make the payment into my account?

Caduta_Massi

Biggles wrote: »

Which tech company is it?

It is Imagination Tech

Apodemus

Caduta_Massi wrote: »

Thanks for the info Apodemus, I do have a vote and it is a straight cash sale, I assume that as they have my bank details they will simply make the payment into my account?

I would think so. If you sold earlier you would have dealing costs, so I would imagine you are better to hold through to takeover. Share price would surely already be pretty close to offer price?

Caduta_Massi

It is, there’s a few weeks before it all goes through, many thanks Apodemus.

Biggles

Current share price 172p, acquisition price 182p, so there are a few betting that it won't happen; but it probably will. Meeting 31 Oct.

Yes, it's a cash offer so you'll get the cash paid either to you if you hold a cert (or to your brokerage account if you hold in a nominee a/c).

Seems to be little advantage in selling now unless you're in the camp that thinks it won't go through and that the price will then tank...

Caduta_Massi

Biggles wrote: »

Current share price 172p, acquisition price 182p, so there are a few betting that it won't happen; but it probably will. Meeting 31 Oct.

Yes, it's a cash offer so you'll get the cash paid either to you if you hold a cert (or to your brokerage account if you hold in a nominee a/c).

Seems to be little advantage in selling now unless you're in the camp that thinks it won't go through and that the price will then tank...

Thanks Biggles, that's very helpful, I'll sit tight. CM