M&S Rights issue

homerhotspur

I've got some M & S shares and have been notified of the rights issue and all the options available to me. I'm not interested in buying any( i'd rather sell at some point) , I understand that I can opt to sell the Nil Paid rights and get a bit of cash but , as it is fully underwritten, I also understand I may also get some cash if I just do nothing. Is there an obvious better course of action to take? Thanks

george4064

There is never any 'obvious better course of action to take', because the best course of action for investor A might be completely different to investor B and different for investor C.

You just need to read through the rights issue details and decide for yourself, what is the best option for YOU.

P.S. I don't own M&S shares (thank god!)

homerhotspur

I think you've misunderstood my question or I didn't explain it very well.


I am not sure what the difference is between selling the Nil paid shares myself or just waiting to be paid for them by the underwriters and was asking if there was anything obvious which would help with this decision.

Tom99

homerhotspur wrote: »

I've got some M & S shares and have been notified of the rights issue and all the options available to me. I'm not interested in buying any( i'd rather sell at some point) , I understand that I can opt to sell the Nil Paid rights and get a bit of cash but , as it is fully underwritten, I also understand I may also get some cash if I just do nothing. Is there an obvious better course of action to take? Thanks

Sell the Nil Paid Rights now or just let you option expire and receive some cash for them at the end of the process?
Which option will get you the most cash will probably depend of what happens to the M&S share price between now and when the offer ends. They are 225p today and the option price is 185p. Is there a dealing fee for you to sell the rights now?

kats53

homerhotspur wrote: »

I think you've misunderstood my question or I didn't explain it very well.


I am not sure what the difference is between selling the Nil paid shares myself or just waiting to be paid for them by the underwriters and was asking if there was anything obvious which would help with this decision.

I too am in the same position, the literature received with the letter is not very clear and I am finding it difficult to understand what the best option is.
I don't know if this article might be some help in explaining things to you
https://www.proactiveinvestors.co.uk/companies/news/221129/ms-expected-to-narrowly-avoid-ftse-100-relegation-after-rights-issue-221129.html

kats53

kats53 wrote: »

I too am in the same position, the literature received with the letter is not very clear and I am finding it difficult to understand what the best option is.
I don't know if this article might be some help in explaining things to you
https://www.proactiveinvestors.co.uk/companies/news/221129/ms-expected-to-narrowly-avoid-ftse-100-relegation-after-rights-issue-221129.html

https://www.sharesoc.org/blog/company-news/rights-issues-open-offers-should-i-take-up-ms-and-egdon/
or this

kangoora

The last shares I'd want to own in the current climate are anything involving retail in the High Street..........

melbury

After some thought I decided to go for option 4.

At least it is not costing me any more money and will give me a few more shares.

I am always a bit nervous of doing things like this online, but have to say that the process was very simple and straightforward.

So now I can forget about it and shred all of the complicated looking documents that were sent through the post:)

POPPYOSCAR

kangoora wrote: »

The last shares I'd want to own in the current climate are anything involving retail in the High Street..........

Quite happy myself to take the risk.

The dividend payout is usually good and I take it on a shareholder card which uplifts by 10% which I spend in store.

Mike_FS

kangoora wrote: »

The last shares I'd want to own in the current climate are anything involving retail in the High Street..........

I understand the rights issue is all about raising money to fund M&S's new venture with Ocado.

homerhotspur

Tom99 wrote: »

Sell the Nil Paid Rights now or just let you option expire and receive some cash for them at the end of the process?
Which option will get you the most cash will probably depend of what happens to the M&S share price between now and when the offer ends. They are 225p today and the option price is 185p. Is there a dealing fee for you to sell the rights now?

Yes, there would be a modest dealing fee