National Grid Rights Issue

wmb194

Francus said:

Bit off topic but has anyone actually received their Provisional Allotment Letter, enabling then to choose an option? 
I've still not received mine. Equiniti are pretty useless and after being passed from pillar to post are unable to email it to me. It's only two days till some of the options expire. 

My stockbroker has by email/secure message and I've made my choice. This is one of the advantages of not holding certificates/using Equiniti.

Chartac

I have had a letter today regarding my shares.  I don't want to buy any shares although I have been offered 184 on a provisional option offer.  I am happy to hold onto the shares I already own and don't want to lose them.  The gobbledegook is as clear as mud to me do I just ignore the notice?  It only arrived today and runs out on the 31.05.2024. Plain simple advice required.

SS069BB9

Sorry for sounding thick, but are we NG shareholders looking to loose quite a bit of capital in terms of cash, or does one of the rites allow you to retain the new allocation as stated in Box 2 & receive the difference in cash from the sale of the shares. i.e. if you hold 1000 shares in Box 1, the new allocation in Box 2 is 400, do we receive the lost 600 shares in term os cash at the close of business on 20th May...?

SS069BB9

SS069BB9 said:

Sorry for sounding thick, but are we NG shareholders looking to loose quite a bit of capital in terms of cash, or does one of the rites allow you to retain the new allocation as stated in Box 2 & receive the difference in cash from the sale of the shares. i.e. if you hold 1000 shares in Box 1, the new allocation in Box 2 is 400, do we receive the lost 600 shares in term o cash at the close of business on 20th May...?

Having read & digested al the info....the process is offering additional shares at a discounted rate of £6.45/share

If you take up all your rights, you can sell the shares as soon as you have the cert to hand & hopefully make £2/share (£8.45/share on trading day less costs) current price for selling your options can be tracked within the following link....this did hit £2.13/share, multiply what you are entitled to from Box 2 & that's what will be paid into your account by24th June...

But my question is, is the National Grid Nill Paid Rights value at the time of us hitting 'sell all of your rights' button, or is it when the application deadlines close?

I cant post the link - just Google 'National Grid Nill Paid Rights'

wmb194

SS069BB9 said:

SS069BB9 said:

Sorry for sounding thick, but are we NG shareholders looking to loose quite a bit of capital in terms of cash, or does one of the rites allow you to retain the new allocation as stated in Box 2 & receive the difference in cash from the sale of the shares. i.e. if you hold 1000 shares in Box 1, the new allocation in Box 2 is 400, do we receive the lost 600 shares in term o cash at the close of business on 20th May...?

But my question is, is the National Grid Nil Paid Rights value at the time of us hitting 'sell all of your rights' button, or is it when the application deadlines close?

How do you hold these? You need to clarify with your broker. Usually you can sell your rights in the market and you'll get whatever the market's offering in that moment. 

SS069BB9

wmb194 said:

SS069BB9 said:

SS069BB9 said:

Sorry for sounding thick, but are we NG shareholders looking to loose quite a bit of capital in terms of cash, or does one of the rites allow you to retain the new allocation as stated in Box 2 & receive the difference in cash from the sale of the shares. i.e. if you hold 1000 shares in Box 1, the new allocation in Box 2 is 400, do we receive the lost 600 shares in term o cash at the close of business on 20th May...?

But my question is, is the National Grid Nil Paid Rights value at the time of us hitting 'sell all of your rights' button, or is it when the application deadlines close?

How do you hold these? You need to clarify with your broker. Usually you can sell your rights in the market and you'll get whatever the market's offering in that moment. 

Thanks for the info - I have these on PAL - If I acted sooner I could have sold my rights for £2.30/share....i have an allocation of 1945 new shares, I shall be keeping an eye on the market rate for NPR value.... I dont realy want nymore shares but the cash from sale of shares would be nice.

Are the sale of rights proceeds free from CGT?

gt94sss2

https://www.gov.uk/guidance/capital-gains-tax-share-reorganisation-takeover-or-merger#rights-that-you-give-up-or-sell-on

C_Mababejive

Bottom line, if you have sufficient funds to take up all your rights, then i guess thats the best thing to do? The issue of new shares is already baked into the share price and what we are seeing is just minor tremors after the initial shock wave. There is also an ex divi date very soon. Surely the share prices will not drop as low as 6.45 any time soon once the dust has settled??

EthicsGradient

C_Mababejive said:

Bottom line, if you have sufficient funds to take up all your rights, then i guess thats the best thing to do? The issue of new shares is already baked into the share price and what we are seeing is just minor tremors after the initial shock wave. There is also an ex divi date very soon. Surely the share prices will not drop as low as 6.45 any time soon once the dust has settled??

If the ex-dividend price remains above £6.45 (so !!!!!!-dividend 6.45+0.3912 = £6.8412), then if you don't take up your rights, they'll be sold for you, and you'll get the proceeds. The market should (and has been, so far) keeping the full share and nil-paid price in line, so that one is not inherently preferable to the other. It's really a question of whether, at the current price, you fancy investing more in National Grid, without having to pay trading fees to get it. If you don't, then letting the rights lapse means you'll get a bit of cash back from your investment, but will be entitled to lower dividends in the future.

Nosmo_King_2

What are my likely options as my NG shares are held in an ISA and am close to the annual allowance?