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Whitbread rights issue

Bigbrown
Posts: 11 Forumite

I took my eye off the ball, not realising that Whitbread were doing a rights issue. So today, a cheque has arrived for approximately half of my shares. It looks like they have been sold for about half their value. I was under the impression that normally a rights issue is where every one original share is exchange for 2 new shares so why I have received this cheque.
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Comments
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What do you mean "a cheque has arrived for approximately half of my shares"Do you mean they've sold half and you still own half?0
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Didn't you read the prospectus they sent you ? The rights issue gave you the right to buy 1 additional share for every 2 held at a discount price of £15.00 each. If you did not take up the offer your extra shares were sold. The price they got for them was £25.50 each which was paid to you less the £15.00 offer price and costs so around £10.45 for each share you did not take up. You still have your original shares but they now only represent 2/3 of your original share in the company.
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I did not receive the prospectus, and was amazed to receive the cheque. Thanks for explaining.
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Bigbrown said:I did not receive the prospectus, and was amazed to receive the cheque. Thanks for explaining."Real knowledge is to know the extent of one's ignorance" - Confucius0
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