National Grid Rights Issue

EthicsGradient

The exact date you have to purchase the additional shares by depends on if you own them as paper certificates, or on a platform - check your own documentation (eg, on interactive investor, I have until 11:59pm on Wed 5th June to buy).

If you leave the 117 to lapse, they will be sold for you, and you'll get the proceeds (there's a vague "after expenses" caveat with those; those expenses ought to be low, since they'll be selling lots of shares. I hope, anyway). If the price were to stay the same, it ought to get you around £1.47 * 117 = £171.99, but who knows what the price will do in a couple of weeks? If anyone has experience of what usually happens with a lapsed rights issue price, it'd be good to hear.

TATJAM

If I sell my rights under option 2 will I get  £6.45 or what the rights are selling for on the market i.e. about £2 ? Thanks in advance

Chartac

Thank you again EthicsGradient the deadline for me is 11am 10th June 2024 and I am going to buy 67 and they can sell the rest. Just looked up and the nil share price is £1.55 today?  

Am I better off doing it before the now or waiting till the deadline I know you can't predict markets?

Just one last question so my 633 shares + 67 = 700 does this mean they are all worth market value at £8.43?  I know they go up and down and these will be the first shares I have bought.  These have always been rainy day money and I haven't needed them.

EthicsGradient

For those referring to "Option 2" and so on, be aware that anyone who holds their shares on a platform hasn't seen a "Provisional Allotment Letter", so we generally don't know which option is which. But 24-12356-25_c9 1..172 (nationalgrid.com) does tell us that Option 2 is "Partial Take-up"; you pay, by the deadline, £6.45 for each share you convert to fully-paid, and then, a few days later, they'll sell the remainder, at what the market price for them is by then (note: it's not £2 now, it's about £1.55), with something as expenses, and I don't know if they give any indication anywhere what those expenses might be.

Chartac, if you want to sell the rest "now", you have to use the Special Dealing Service (I just read more of the document above) by tomorrow. If you let them lapse, it's Option 2 as above. I can say which is better.

Your 633 shares are currently worth £8.43 each, but that includes the entitlement to the 39p dividend. On Thur June 6th the shares will start trading without the entitlement, so their price will drop around 39p, ie to £8.04 if there were no variation in the market price before then. The new shares aren't entitled to the dividend, which is why their price is about £8.04 - £6.45 (a few pence out; if you take the last prices while normal trading was going on today, ie just before 4:30pm, you get £8.37 and £1.52; 837 - 39 - 645 = 153 , so that's pretty accurate. The £8.43 and £1.55 may come from out-of-hours trading, which is a bit more volatile).

Twishyblue

I’m considering the cashless take up. Can someone navigate me around the website I can not identify how to do this.  Or If I do purchase new shares if there’s any other method to pay I no longer poses a cheque book

Apologise if these seem minor request I am not very familiar with the world of trading 😏 

Bughunter00

Is anyone able to advise on what the percentage loss of dividend might be? I currently have 1466 shares and have been alloted 427 new shares which will cost me £2754 to purchase. If my dividend payments will reduce by 30% by not taking up the rights I might buy them but if its a lower percentage I might be tempted just to go for the cashless offer.  

kimmylee

Hello all, recd letter yesterday, we wish to take up the rights but I cannot see where on the form I need to sign? Can anyone advise?
Form X renunciation says do NOT sign if the new shares are to be in the name of the shareholders.
Don't think Form Y renunciation also doesn't apply. 

Chartac

EthicsGradient - Thanks for your help in understanding the shares.  I purchased the 67 today so now own 700 shares so I have bought just over a third of what I was offered.  Don't know how much I will benefit or how much cash back I will get.  Thanks again 

Chartac

kimmylee said:

Hello all, recd letter yesterday, we wish to take up the rights but I cannot see where on the form I need to sign? Can anyone advise?
Form X renunciation says do NOT sign if the new shares are to be in the name of the shareholders.
Don't think Form Y renunciation also doesn't apply. 

Just done it online is easier than the form.   Only a partial purchase and it was easy but you have to pay straight away and on a bank account not a credit card.  All done no fuss then they sent an email confirmation so all good I think

EthicsGradient

Bughunter00 said:

Is anyone able to advise on what the percentage loss of dividend might be? I currently have 1466 shares and have been alloted 427 new shares which will cost me £2754 to purchase. If my dividend payments will reduce by 30% by not taking up the rights I might buy them but if its a lower percentage I might be tempted just to go for the cashless offer.  

See https://forums.moneysavingexpert.com/discussion/comment/80809675/#Comment_80809675  (page 3 of this thread). Before, 1 old share got you a dividend of 58.52p; they anticipate this would become 45.3p for 1 share after reorganisation. So if before you had 24 shares, you got £14.04 in dividends; if you made the payment for the 7 new shares, you'll have 31 and still get £14.04.

So it you take up no rights, your dividends will be 45.3/58.52 of before, ie 77.4%, or a drop of 22.6% - but you'll get a bit of cash, once only, from the sale of the rights.