menu

Rights Issue @ £1.53

lse:gnc

#1

9 for 13 @ 1.53 is great news… right ?


#2

Source?


#3

Had letter from broker (HSBC) , stating an EGM on 7th Dec , to propose said Rights Issue 9/13 @ 1.53


#4

Not heard anything from Barclays, and the timetable is very squeeZed, but Barclays are usually a day and a half behind…


#5

EGM Today. Resolutions passed.


#6

Should we not have heard from our broker on this corporate action today? I’m with Barclays and I’ve heard nothing. Anyone else?


#7

Say,

Have 13 shares @ 2.80 (price 3 days ago) = £36.40
Take 9 new shares @ 1.53 = £13.77
£36.40+£13.77= £50.17 (total paid for 21 shares)
50.17 / 21 = £2.39 per share COST

Price now is £2.18

So if you take up the rights, we still lose !
If you don’t take up rights, lose even more !?

Where am I going wrong ??


#8

Errrm, how can I put this? 13 + 9 = 22


#9

LOL, great, thanks for the correction, our losses decrease.
Yeah, got tangled up in numbers… Still, I don’t like them.


#10

It suggests the institutional investors are not that excited about the short to medium term impact of the Peacock takeover. I’m not either. Looks like a 3 to 5 year burn to me. It’s an odd merger. I can’t see how Greencore can run it better, or take out costs, or transform growth, that the yanks haven’t done already.

Pay up and move on.


#11

Price is now high enough to make it a no-brainer. Except if I were the underwriter I’d make sure that was the case, then walk away with just my fee.


#12

238p current price must be the lowest price for anyone taking up the rights. For me personally, I bought in at 301p, so my breakeven is about 245p. I think there’s quite a story ahead here. Investec don’t behave like an in house broker chucking about daft target prices. They are the real deal and say 330p post takeover. I was unconvinced by the logic of the takeover but clearly there are now a lot of people who want an increased slice of the increased action.


#13

Remember the original holding also already comes with a 3.3p divi to be paid in April built in.


#14

I don’t understand how the price I bought in at affects whether I should subscribe to my rights (I bought in at 265)?


#15

Sorry to disagree Infra-penny as to the lowest price you could’ve got in for the rights issue.
I believe it was 275-280 at best. The day after the offer closed, it sank to 235.
If in at 280 , you’ll break even at 235. Any higher, you’re OK.
My existing shares from 110p are going to do very well.