TUI shares

Shocking_Blue

Dear all,
Apologies for trawling for free info here, but I know there are members on this forum who do know their stuff, and are able to give clear and cogent responses free of any pumping/dumping/bluff or opaque rhetoric.
I hold about £500 worth of TUI shares (155 in total), and have now been offered 133 new shares at Euro 1.07 each. My own intuition is telling me to accept this offer and buy these. Does this make sense?
Thanks for any input.

Prism

TUI shares are nearly 4 Euros from what I can see. Why would someone offer you 133 shares for 1.07 Euros when they can sell them on the open market for more?

In fact why would someone offer to sell you shares at all? Did you request a quote somehow?

Username999

Prism said:

TUI shares are nearly 4 Euros from what I can see. Why would someone offer you 133 shares for 1.07 Euros when they can sell them on the open market for more?

In fact why would someone offer to sell you shares at all? Did you request a quote somehow?

It's a "Rights Issue".
I'll be taking it.
TUI.L want to raise half a billion.

Shocking_Blue

Prism said:

TUI shares are nearly 4 Euros from what I can see. Why would someone offer you 133 shares for 1.07 Euros when they can sell them on the open market for more?

In fact why would someone offer to sell you shares at all? Did you request a quote somehow?

Apologies, is part of a rights issue.

Shocking_Blue

Username999 said:

Prism said:

TUI shares are nearly 4 Euros from what I can see. Why would someone offer you 133 shares for 1.07 Euros when they can sell them on the open market for more?

In fact why would someone offer to sell you shares at all? Did you request a quote somehow?

It's a "Rights Issue".
I'll be taking it.
TUI.L want to raise half a billion.

Thanks for this.

 On the doc I have about this it states:

 ‘...25 Subscription Rights (the Rights) for every 29 TUI Ordinary shares held on the Ex-entitlement Date of 8th January 2021. Each Right entitles the holder to subscribe for 1 New TUI Ordinary share at a price of EUR 1.07 per New Ordinary share.’

 But then further down it states the buy option as being:

‘Accept the Offer to buy 133 TUI AG ORD REG SHS NPV DI shares at a cost of 128.33 GBP’

Just wondering why the buy price in GBP is not around £0.96 (equivalent to Euro 1.07). Wondered if you happen to know.

Also, I have showing now in my account two listings for my TUI holdings: the existing ones, which I’m in profit with, and a line for the new shares (currently showing no value etc). Sorry if I’m reading this wrong, but couldn’t I just sell my existing holdings now and then buy the new shares later this month at the reduced price?

Thanks for any clarification

tryingtogetmyheadaround

Sweet as got in by 1 day!!!! I have taken them up on the offer. Thanks for posting I wouldn't even have checked my app so wouldn't have known about this.

Thrugelmir

62% down in a year. Ouch!  Far from out of the woods either. With the German state taking a 25% stake. 

wmb194

Shocking_Blue said:

Username999 said:

Prism said:

TUI shares are nearly 4 Euros from what I can see. Why would someone offer you 133 shares for 1.07 Euros when they can sell them on the open market for more?

In fact why would someone offer to sell you shares at all? Did you request a quote somehow?

It's a "Rights Issue".
I'll be taking it.
TUI.L want to raise half a billion.

Thanks for this.

 On the doc I have about this it states:

 ‘...25 Subscription Rights (the Rights) for every 29 TUI Ordinary shares held on the Ex-entitlement Date of 8th January 2021. Each Right entitles the holder to subscribe for 1 New TUI Ordinary share at a price of EUR 1.07 per New Ordinary share.’

 But then further down it states the buy option as being:

‘Accept the Offer to buy 133 TUI AG ORD REG SHS NPV DI shares at a cost of 128.33 GBP’

Just wondering why the buy price in GBP is not around £0.96 (equivalent to Euro 1.07). Wondered if you happen to know.

Also, I have showing now in my account two listings for my TUI holdings: the existing ones, which I’m in profit with, and a line for the new shares (currently showing no value etc). Sorry if I’m reading this wrong, but couldn’t I just sell my existing holdings now and then buy the new shares later this month at the reduced price?

Thanks for any clarification

GBP = pounds whilst GBX = pence so it's stating the total cost not the price per share and that sounds in the ballpark of being right, at an exchange rate of 1.108 GBP/EUR.

You're misunderstanding how rights issues work. All things equal the share price after this new issuance will fall but not to the price of the new issuance as, I'm assuming, it will still be a relatively small number of shares relative to the existing number. You could Google how to calculate an ex-rights share price.

Shocking_Blue

wmb194 said:

Shocking_Blue said:

Username999 said:

Prism said:

TUI shares are nearly 4 Euros from what I can see. Why would someone offer you 133 shares for 1.07 Euros when they can sell them on the open market for more?

In fact why would someone offer to sell you shares at all? Did you request a quote somehow?

It's a "Rights Issue".
I'll be taking it.
TUI.L want to raise half a billion.

Thanks for this.

 On the doc I have about this it states:

 ‘...25 Subscription Rights (the Rights) for every 29 TUI Ordinary shares held on the Ex-entitlement Date of 8th January 2021. Each Right entitles the holder to subscribe for 1 New TUI Ordinary share at a price of EUR 1.07 per New Ordinary share.’

 But then further down it states the buy option as being:

‘Accept the Offer to buy 133 TUI AG ORD REG SHS NPV DI shares at a cost of 128.33 GBP’

Just wondering why the buy price in GBP is not around £0.96 (equivalent to Euro 1.07). Wondered if you happen to know.

Also, I have showing now in my account two listings for my TUI holdings: the existing ones, which I’m in profit with, and a line for the new shares (currently showing no value etc). Sorry if I’m reading this wrong, but couldn’t I just sell my existing holdings now and then buy the new shares later this month at the reduced price?

Thanks for any clarification

GBP = pounds whilst GBX = pence so it's stating the total cost not the price per share and that sounds in the ballpark of being right, at an exchange rate of 1.108 GBP/EUR.

You're misunderstanding how rights issues work. All things equal the share price after this new issuance will fall but not to the price of the new issuance as, I'm assuming, it will still be a relatively small number of shares relative to the existing number. You could Google how to calculate an ex-rights share price.

Thanks for the clarification on exchange rate.
Yep, aware of the share price likely to fall after the issuance, but not as low as Euro 1.07. But, in the meantime (before the post-issuance fall - later this month?), can't I sell my existing shares for the (pre-issuance) value, as it stands for those shares at the moment?

Username999

Don't buy the shares if you think TUI will NOT recover to a profitable level.

Shocking_Blue

Username999 said:

Don't buy the shares if you think TUI will NOT recover to a profitable level.

Sorry, perhaps not explaining.
Can't I just:
Sell my existing shares tomorrow, which are up on what I paid for them a little while back
Buy the Euro 1.07 shares entitlement
Sell them (for more than the Euro 1.07, as I'm sure the price won't be as low as that later this month), once trading has started on them.
Therefore, I'm up on my old shares, and have some new ones at a low price, which I can then also sell after trading starts.
Or is that too simple/incorrect reading of things?
Thanks