Bristol & West winding up. Legacy demutualisation shares?

RainbowsInTheSpray

Any share-savvy people here? 

I've received tiny dividend amounts on a regular basis since it demutualised and thought this would continue for ever and a day.

However, just received an inch-thick wadge of mail which, cut short, seems to say that this company is being wound up. 

Does anyone know what's actually going on here? Is there anything I need to do in order to safeguard receiving whatever my minute share of the winding-up proceeds might be? The small print goes on forever and I don't know whether I can simply ignore this mail or not.

Very grateful for any advice.

SnowMan

Wasn't aware of this. But I'm just applying for probate for an estate that includes the ownership via the Halifax Sharedealing platform of about £300 worth of these Bristol and West 8.125% preference shares.

The information on the offer is here

https://ww3.linkgroup.eu/bristol-and-west/disclaimer/home/

I'm no expert on these things. But assuming the offer is accepted by enough shareholders, then if you do nothing then they seem to say that the voluntary liquidation should take place around the second quarter of 2024. You will get a payment for the value of your shares around then and you obviously no longer get any dividends (see section 9. of the frequently asked questions document)

On a small shareholding you won't really lose out by doing nothing (the liquidation assumes if you don't accept the tender offer you get a fair distribution based on the tender offer) but you will have to wait until the liquidation is completed to get the value of the shares.

If you are holding these shares in certificated form (that is you own them through a share certificate not indirectly via a broker or platform), and the fact you've got all that paperwork suggests you are, but aren't going to participate in the offer you should complete the registration process before 19th December so that they know which account to pay the proceeds into. This is accessed via the Exit Term Offer Election and Registration Form' section from my link.

RainbowsInTheSpray

Extremely grateful for the comprehensive answer.

So I take it the short answer (no criticism intended) is yes... I need to 'complete the registration process'.

SnowMan

RainbowsInTheSpray said:

Extremely grateful for the comprehensive answer.

So I take it the short answer (no criticism intended) is yes... I need to 'complete the registration process'.

Yes that's right

RainbowsInTheSpray

Ok, have now done this. Extremely easy and took no time. Hopefully I can now just ignore the received paperwork and receive value for the shareholding when the closure takes place. 

Thanks again. Your help was much appreciated.

SnowMan

RainbowsInTheSpray said:

Ok, have now done this. Extremely easy and took no time. Hopefully I can now just ignore the received paperwork and receive value for the shareholding when the closure takes place. 

Thanks again. Your help was much appreciated.

Thanks. They are scheduled to announce the result of the exit tender offer on 15th December. And so assuming it all goes through, then expect your closure money around the second quarter of 2024.

Vespaboy

we’ve had these and have now sold them. They were free shares on the demutualisation of B and W building society bank of Ireland bought back in the 90,s I think

Nice divi whilst it lasted but the faff of this legacy company going into liquidation  and potentially getting less ( liquidators do not come cheap ) I would rather have the money back and amount small so would be gobbled up by fees

SnowMan

Vespaboy said:

we’ve had these and have now sold them. They were free shares on the demutualisation of B and W building society bank of Ireland bought back in the 90,s I think

Nice divi whilst it lasted but the faff of this legacy company going into liquidation  and potentially getting less ( liquidators do not come cheap ) I would rather have the money back and amount small so would be gobbled up by fees

This is a voluntary liquidation. The costs of liquidation aren't being incurred by the preference shareholders but by the Bank of Ireland effectively. Bank of Ireland provide the funding for Bristol and West to ensure it remains solvent. The only purpose for Bristol and West's existence has been to pay the preference shareholders. Preference share holders are getting a fair price through the tender offer. 

I accept it could get messy if it doesn't go through, but on a small shareholding it's not a big concern. But each to their own, I can see why selling now might be chosen. Today's closing price is 111p while the tender price is around 114p. You have to factor in the broker costs of selling the shares also bearing in mind the holding is a small one.

SnowMan

For those who accepted the tender offer, the Bank of Ireland have agreed to buy the tendered Bristol and West 8.125% preference shares, see the 15th December announcement from yesterday morning

https://investorrelations.bankofireland.com/press-releases/stock-exchange-announcements/

Bank of Ireland now own 57% of the share capital. As this is less than 75% it is now down to the shareholder meetings on Monday to agree the amendments to the articles to enable the voluntary liquidation of the company and remaining preference shares to go ahead.

The 8.125% preference shares are priced for investors to sell at 111p or to buy at 115p at yesterday's close. The proposed liquidation price which is set as the same as the tender office price is just over 114p.

SnowMan

RainbowsInTheSpray said:

Ok, have now done this. Extremely easy and took no time. Hopefully I can now just ignore the received paperwork and receive value for the shareholding when the closure takes place. 

Thanks again. Your help was much appreciated.

The special resolutions have passed at the general meeting. So the voluntary liquidation of Bristol and West will go ahead as expected with preference shareholders getting paid back for the cancellation of their preference shares based on the recent tender offer price. Payment according to the earlier documents is estimated to happen before the end of the second quarter of 2024.

https://investorrelations.bankofireland.com/app/uploads/2023.12.18-Bristol-West-plc-Results-of-the-General-Meetings.pdf

SnowMan

Just to update the thread. There have been delays with the liquidation and those who completed the registration process can now expect payment at the end of quarter 3 or the beginning of quarter 4 of this year according to this Bank of Ireland update.

https://investorrelations.bankofireland.com/app/uploads/Update-on-payments-in-the-liquidation-of-Bristol-West-Plc-in-members-voluntary-liquidation-23-08-2024.pdf