Rights Issue @ £1.53



9 for 13 @ 1.53 is great news… right ?




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


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


EGM Today. Resolutions passed.


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



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 ??


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


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


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.


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.


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.


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


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


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.