AA Shares

P.Pea
P.Pea Posts: 7 Forumite
in Savings & investments
My wife had some shares off the AA when it was floated. I told her not to sell them as they would make a few pounds over the years. She had to exchange them for Centrica shares when Centrica purchased the AA. They gave her 123 shares. As I understand it 123 share multiplied by the price per share is now worth £22,000+ with the initial investment being £155 or there abouts? Is this correct? Or are we just misunderstanding the share system.
:money:
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Comments

  • greatkingrat
    greatkingrat Posts: 324 Forumite
    First Anniversary First Post
    The share price is quoted in pence not pounds. So 123 shares would be worth around £220, not £22000!
  • walkonsand
    walkonsand Posts: 8 Forumite
    First Anniversary
    Centrica shares are at £1.80 approx per share at the moment, so it'd be £220 or so. The price of shares are in pence rather than pounds sadly
  • P.Pea
    P.Pea Posts: 7 Forumite
    Thanks guy's it did sound somewhat crazy...
  • P.Pea
    P.Pea Posts: 7 Forumite
    Not a great investment then. After nearly 15 years...
  • frugalmacdugal
    frugalmacdugal Posts: 10,077 Forumite
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    Hi,

    it gets worse!

    Seems Centrica sold AA in 2004, and AA shares today are about 163.00p. so only worth about £200.
  • eskbanker
    eskbanker Posts: 30,827 Forumite
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    frugalmacdugal wrote: »
    Hi,

    it gets worse!

    Seems Centrica sold AA in 2004, and AA shares today are about 163.00p. so only worth about £200.
    It doesn't get worse for OP's wife though - the sale of AA by Centrica wouldn't mean that a Centrica shareholder (whose shares happened to have originated from AA ones) would be somehow forced to take AA shares again, so there's no reason why OP's wife would be affected in any way by the 2004 demerger!
  • frugalmacdugal
    frugalmacdugal Posts: 10,077 Forumite
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    HI,
    eskbanker wrote: »
    It doesn't get worse for OP's wife though - the sale of AA by Centrica wouldn't mean that a Centrica shareholder (whose shares happened to have originated from AA ones) would be somehow forced to take AA shares again, so there's no reason why OP's wife would be affected in any way by the 2004 demerger!

    I was meaning the slight drop in value because of share price, 163.00p rather than 180.00p
  • eskbanker
    eskbanker Posts: 30,827 Forumite
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    frugalmacdugal wrote: »
    HI,



    I was meaning the slight drop in value because of share price, 163.00p rather than 180.00p
    There is no "drop in value because of share price, 163.00p rather than 180.00p", as those share prices relate to two different companies, so I still don't understand your 'it gets worse' comment! What gets worse and for whom?

    OP's wife's 123 Centrica shares (held since 1999) will still be valued at 180p per share and won't be affected in any way by the market price of shares in the post-2014 iteration of the AA (which are unrelated to those in the entity floated in 1999 anyway)....
  • frugalmacdugal
    frugalmacdugal Posts: 10,077 Forumite
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    Hi,

    ok, :o, I get it.

    I was thinking that OP's wife's shares had reverted back to AA shares.

    I'll go sit in the corner.

    images?q=tbn:ANd9GcQzZvRiHjkEmj0Qkx91IqJb1DemjAM8NDQzBLUORjRVEJS-6rGg
  • AndyT678
    AndyT678 Posts: 757 Forumite
    First Anniversary Combo Breaker
    P.Pea wrote: »
    Not a great investment then. After nearly 15 years...

    What's happened to the dividends? Are you including the value of those in the assessment above?
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