Royal Mail shares letter offering to buy shares but not stating the figures

whalemoney

I keep getting letters from Royal Mail, which I understand they're sending to all shareholders.  They're offering to buy my shares but they've not put a single figure in any of the dozens of pages of waffle.  How on earth do I work out what their offer is.  They're just wasting everyone's time with this endless nonsense failing to explain why they're even writing to shareholders.

FrugaiMacDugal

Another thread here, with links.

whalemoney

FrugaiMacDugal said:

Another thread here, with links.

Thanks but I don't understand a single thing in that thread.  The people in that thread have prior knowledge of the issue and are talking about something half way through it.  I have no idea why they are sending letters to me!  Nothing has been explained!!!!

FrugaiMacDugal

As I understand it.

The offer was for £3.70 a share.

Letters were resent on 8 April 2025 to shareholders who had not accepted the Offer as at 21 March 2025.

The reason for the letter is because it's getting near the deadline.

To receive the cash proceeds at the earliest opportunity, please give your instruction to accept the Offer no later than 1.00 p.m. on 25 April 2025 being three business days before the latest date by which the Offer may be declared or become Unconditional.

If you give your instruction to accept the Offer after this deadline, it will take longer to receive your proceeds.

If you do nothing your shares will be acquired and you will receive your proceeds in due course.

TheBanker

FrugaiMacDugal said:

As I understand it.

The offer was for £3.70 a share.

Letters were resent on 8 April 2025 to shareholders who had not accepted the Offer as at 21 March 2025.

The reason for the letter is because it's getting near the deadline.

To receive the cash proceeds at the earliest opportunity, please give your instruction to accept the Offer no later than 1.00 p.m. on 25 April 2025 being three business days before the latest date by which the Offer may be declared or become Unconditional.

If you give your instruction to accept the Offer after this deadline, it will take longer to receive your proceeds.

If you do nothing your shares will acquired and you will receive your proceeds in due course.

I deleted my previous reply as the one provided by @Fr@FrugaiMacDugal is more helpful. 

wmb194

Overall the offer was 360p per share plus a 8p special dividend and 2024 2p final dividend = 370p per share.

I think this 2p dividend is the dividend paid on 30/09/24 (this process has dragged on far, far longer than everyone had hoped) so I think the final amount left to be received is 368p.

The danger in not accepting the offer or selling in the market now is that you end up owning shares in an unlisted company.

https://forums.moneysavingexpert.com/discussion/6537506/royal-mail-stock-holding-what-to-do/p7

wmb194

FrugaiMacDugal said:

As I understand it.

The offer was for £3.70 a share.

Letters were resent on 8 April 2025 to shareholders who had not accepted the Offer as at 21 March 2025.

The reason for the letter is because it's getting near the deadline.

To receive the cash proceeds at the earliest opportunity, please give your instruction to accept the Offer no later than 1.00 p.m. on 25 April 2025 being three business days before the latest date by which the Offer may be declared or become Unconditional.

If you give your instruction to accept the Offer after this deadline, it will take longer to receive your proceeds.

If you do nothing your shares will acquired and you will receive your proceeds in due course.

This is only the case with 90%+ voting in favour. If 75% to 90% current holders will remain shareholders but the company will delist from the LSE and they'll have a harder time selling them.

whalemoney

FrugaiMacDugal said:

.

The reason for the letter is because it's getting near the deadline.

What deadline?  I'm still massively confused over this.

The options this forum are telling me are;
1) Accept the offer despite the fact I don't want to sell at a loss;
2) Keep the shares and they'll be taken off me "in due course" (presumably at the same sh*tty price resulting in the same loss)
3) If they're not taken off me at a sh*tty price then I keep hold of them in a company no longer on the stock exchange and it's impossible to ever sell them

wmb194

whalemoney said:

FrugaiMacDugal said:

.

The reason for the letter is because it's getting near the deadline.

What deadline?  I'm still massively confused over this.

The options this forum are telling me are;
1) Accept the offer despite the fact I don't want to sell at a loss;
2) Keep the shares and they'll be taken off me "in due course" (presumably at the same sh*tty price resulting in the same loss)
3) If they're not taken off me at a sh*tty price then I keep hold of them in a company no longer on the stock exchange and it's impossible to ever sell them

Now that all the regulatory clearances have been cleared the deadline is 30/04 but to get your acceptance in on time you don't have long, see below.

Unfortunately sometimes having to sell at a loss is the nature of investing. It's up to you but personally I'd avoid owning shares in an unlisted company.

The fourth option is to sell them into the market whilst they're still listed. This morning they're trading at 366p per share so the market appears to think this is a done deal (vs the 368p offer).

https://www.londonstockexchange.com/news-article/market-news/acceptance-level-update/17002720

"Acceptance procedure and deadlines

IDS Shareholders who have not yet accepted the Offer are urged to do so as soon as possible in accordance with the procedures set out in paragraph 17 of Part 1 (Letter from EP UK Bidco Limited) of the Offer Document. By way of summary:

·    to accept the Offer in respect of certificated IDS Shares, you must complete and return the Form of Acceptance, together with your share certificate(s) and/or other document(s) of title, as soon as possible and, in any event, so as to be received by Equiniti Limited, Aspect House, Spencer Road, Lancing, West Sussex BN99 6DA by no later than 1.00 p.m. on the Unconditional Date, i.e., by 1.00 p.m. on 30 April 2025. It is recommended to allow four Business Days for delivery within the UK;

·      acceptances in respect of uncertificated IDS Shares should be made electronically through CREST so that the TTE instruction settles no later than 1.00 p.m. on the Unconditional Date, i.e., by 1.00 p.m. on 30 April 2025. CREST sponsored members should refer to their CREST sponsor, as only the CREST sponsor will be able to send the necessary TTE instruction(s) to Euroclear;

·     acceptances in respect of IDS Shares held in the Nominee Share Service should be made via an online instruction so that they are received by the Nominee no later than 1.00 p.m. three Business Days prior to the Unconditional Date, i.e., by 1.00 p.m. on 25 April 2025; and

·     acceptances in respect of IDS Shares held in the IDS SIP should be made via an online instruction so that they are received by the SIP Trustee no later than 1.00 p.m. three Business Days prior to the Unconditional Date, i.e., by 1.00 p.m. on 25 April 2025."

FrugaiMacDugal

whalemoney said:

What deadline?  I'm still massively confused over this.

The options this forum are telling me are;
1) Accept the offer despite the fact I don't want to sell at a loss;
2) Keep the shares and they'll be taken off me "in due course" (presumably at the same sh*tty price resulting in the same loss)
3) If they're not taken off me at a sh*tty price then I keep hold of them in a company no longer on the stock exchange and it's impossible to ever sell them

Deadline, To receive the cash proceeds at the earliest opportunity, please give your instruction to accept the Offer no later than 1.00 p.m. on 25 April 2025 being three business days before the latest date by which the Offer may be declared or become Unconditional.

You have the options, it's your choice.

If £3.70 is selling at a loss then you didn't get them at IPO price, think they were £6 at one time, did you buy them then?

Also, are you counting in dividends received when working out your loss?

wmb194

FrugaiMacDugal said:

whalemoney said:

What deadline?  I'm still massively confused over this.

The options this forum are telling me are;
1) Accept the offer despite the fact I don't want to sell at a loss;
2) Keep the shares and they'll be taken off me "in due course" (presumably at the same sh*tty price resulting in the same loss)
3) If they're not taken off me at a sh*tty price then I keep hold of them in a company no longer on the stock exchange and it's impossible to ever sell them

Deadline, To receive the cash proceeds at the earliest opportunity, please give your instruction to accept the Offer no later than 1.00 p.m. on 25 April 2025 being three business days before the latest date by which the Offer may be declared or become Unconditional.

You have the options, it's your choice.

If £3.70 is selling at a loss then you didn't get them at IPO price, think they were £6 at one time, did you buy them then?

Also, are you counting in dividends received when working out your loss?

That’s for shares held in the IDS SIP, whatever that is. Other forms of holding are next week.