Saga share price pre consolidation.

KevinMark1963

Hello,

First time on the forum.

I am dealing with my late brothers estate. On his death 6/8/2020 he held 756 shares in Saga Plc I’m aware that the shares were consolidated in October 2020 (1 share for every 15 held ) am I right in thinking that the value per share would increase by x 15 on the date of consolidation?
my knowledge on this sort of thing is very limited. Looking at various websites, Saga share history price seems to show the share price in August 2020 at approximately £2.03 a share.

I have been sent a cheque for around £138.00, which I believe is correct, 756 divided by 15 = approx 50 shares,  but 756 shares x £2.03 = £1534.68.
My question is, where can I find the pre consolidation share price for 6/8/2020?

Hope that makes sense?

Thank you 

eskbanker

KevinMark1963 said:

Looking at various websites, Saga share history price seems to show the share price in August 2020 at approximately £2.03 a share.

These sites will probably show prices that have been revalued to account for the subsequent consolidation, i.e. the price would actually have been more like 10-15p at the time.

wmb194

KevinMark1963 said:

Hello,

First time on the forum.

I am dealing with my late brothers estate. On his death 6/8/2020 he held 756 shares in Saga Plc I’m aware that the shares were consolidated in October 2020 (1 share for every 15 held ) am I right in thinking that the value per share would increase by x 15 on the date of consolidation?
my knowledge on this sort of thing is very limited. Looking at various websites, Saga share history price seems to show the share price in August 2020 at approximately £2.03 a share.

I have been sent a cheque for around £138.00, which I believe is correct, 756 divided by 15 = approx 50 shares,  but 756 shares x £2.03 = £1534.68.
My question is, where can I find the pre consolidation share price for 6/8/2020?

Hope that makes sense?

Thank you 

If you understand what and why it happened I think it's pretty clear; essentially Saga was in big trouble and it raised c.£150m by issuing new shares and at the same time it consolidated the shares to prevent it continuing to be a penny share*.

"In connection with the capital raise, the Company intends to ask shareholders to approve a share consolidation. Under the consolidation every 15 Ordinary Shares of 1 pence nominal value (including new shares issued in the capital raise) will be consolidated into 1 Consolidated Share of 15 pence nominal value. The consolidation is being undertaken because the current trading price of the Ordinary Shares is such that a small movement in the Company's share price could result in a large percentage movement and considerable volatility. Thus the purpose of the consolidation is to try to establish a market price for the Company's shares that is more appropriate than the market price at present."

https://www.investegate.co.uk/saga-plc--saga-/rns/interim-results--replacement-/202009101526496610Y/

*This is from Investors' Chronicle March 2020: "...Diversification from the insurance business keeps our recommendation on hold, at 15.4p.

Last IC View: Hold, 49p, 19 Sep 2019"

https://www.investorschronicle.co.uk/shares/2020/03/13/saga-balance-sheet-concerns-mount/

diystarter7

Was it not 6 old shares for one new?

wmb194

diystarter7 said:

Was it not 6 old shares for one new?

Nope, see my post above.

Further evidence: "Further to the Prospectus previously published on 11 September 2020, Saga plc (the "Company" or "Saga") updates that the Share Consolidation of 1 Consolidated Share of 15 pence nominal value for every 15 Ordinary Shares will become effective on 13 October 2020 rather than 12 October 2020 as previously communicated. The record date for the consolidation will also therefore be 6.00 p.m. on 12 October 2020 rather than 9 October 2020 as previously communicated."

https://www.investegate.co.uk/saga-plc--saga-/rns/share-consolidation/202010090800006256B/