Avila Share Consolidation

Pompeynil1

Have I been short changed? I purchased my original shares at £2.51per share and showing a good profit but now since the consolidation I have fewer shares at a purchase price of £3.47 per share so I have lost 96p profit per share. Taking into consideration how much the b shares are returning I’m approx £1000 down on the deal or have I missed something? 

eskbanker

Assuming you're actually referring to Aviva, previous threads have explained how it's neutral for shareholders:

https://forums.moneysavingexpert.com/discussion/6350138/aviva-plc-shares/p1

What was the value of your stake immediately before and after the consolidation and what was the sum returned to you?

EthicsGradient

The B shares are £1 each, aren't they? Which should mean you've gained 4p per share. I can't see how your purchase price has gone up, though. It doesn't affect what they're worth now, but your platform should have adjusted the purchase price down, not up.

eg my platform now shows the total purchase cost of the shares as 80% of what it used to be. Also, they (YouInvest) have now credited the B share cash - slightly over £1/old share held, which I think includes the cash for the odd shares left over after the split.

wmb194

EthicsGradient said:

The B shares are £1 each, aren't they? Which should mean you've gained 4p per share. I can't see how your purchase price has gone up, though. It doesn't affect what they're worth now, but your platform should have adjusted the purchase price down, not up.

eg my platform now shows the total purchase cost of the shares as 80% of what it used to be. Also, they (YouInvest) have now credited the B share cash - slightly over £1/old share held, which I think includes the cash for the odd shares left over after the split.

£1.0169 per share. Yesterday I received the B share cash but I'm still waiting on the fractional share sale proceeds. Yours might be correct but in general I wouldn't trust anything a broker's system states re purchase costs and profits as these sorts of events often tend to throw them off.

EthicsGradient

wmb194 said:

EthicsGradient said:

The B shares are £1 each, aren't they? Which should mean you've gained 4p per share. I can't see how your purchase price has gone up, though. It doesn't affect what they're worth now, but your platform should have adjusted the purchase price down, not up.

eg my platform now shows the total purchase cost of the shares as 80% of what it used to be. Also, they (YouInvest) have now credited the B share cash - slightly over £1/old share held, which I think includes the cash for the odd shares left over after the split.

£1.0169 per share. Yesterday I received the B share cash but I'm still waiting on the fractional share sale proceeds. Yours might be correct but in general I wouldn't trust anything a broker's system states re purchase costs and profits as these sorts of events often tend to throw them off.

You're right - I was just using £1 from my memory, and the amount I've received is that £1.0169, so I think the fractional share amount (eg a couple of pounds) is still to come - YouInvest hadn't broken down what the amount was for. My holding is in a SIPP, so how the purchase cost is divided between new shares and B shares is only of academic interest to me. The Circular says there'll be a worked example on how to do it produced 'soon'.