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Re: Tosco Shares - Buy or Sell?

Started by Fair play, 18-10-19, 03:48PM

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Wilted20

The consolidation ratio is quoted as 19 existing shares : 15 new shares

1000 existing shares will consolidate to 789 new shares

At yesterday’s closing rate of 244.90p, the existing shares will be worth £2499.00

At yesterday’s closing rate of 244.90p, the new shares will be worth £1932.26

The special dividend on 1000 shares will be £509.30, meaning a combined value of £2441.56 (an overall loss of £57.44)

I understand the above - but as per the literature, the existing 5p ordinary share nominal value moves to 6.33p (5p, divided by 15, multiplied by 19 - using the ratio above), after consolidation.

I’m wondering whether the share price will therefore be re-adjusted after consolidation.

(Using the above example, the 244.90p share price would become 310.20p)

This would make the 789 new shares roughly equate to the value of the 1000 existing shares, and give a genuine return to shareholders by way of the special dividend.

owlnight

just read this,
What will happen if I have an SAYE scheme which reaches maturity on 1 February 2021 and I choose to use my savings to buy shares at the SAYE option price?
If you have an SAYE scheme which reaches maturity on 1 February 2021, you will be eligible to receive the Special Dividend on the shares you buy at the SAYE option price if: (i) you enter your maturity instruction to “buy shares to keep or transfer” before the cut-off dates shown below; and (ii) you do not sell the shares before 6.00 p.m. (UK time) on 12 February 2021. The Share Consolidation will also be applied to these shares.
The relevant cut-off dates are as follows:
• Booker 2017 three-year SAYE scheme â€" 2.00 p.m. (UK time) on 1 February 2021
• Tesco Irish 2015 five-year SAYE scheme â€" 6.00 p.m. (UK time) on 3 February 2021
• Tesco UK 2015 five-year SAYE scheme â€" 6.00 p.m. (UK time) on 5 February 2021
If however you: (i) enter an instruction to “buy shares to sell” before the cut-off times shown above; (ii) enter any type of maturity instruction after these cut-off times; or (iii) sell your shares before 6.00 p.m. (UK time) on 12 February 2021 where you have entered your maturity instruction to “buy shares to keep or transfer” before the cut-off dates, you will not be eligible to receive the Special Dividend on the shares you buy at the SAYE option price and the Share Consolidation will also not be applied to these shares.

owlnight

going off the example it gave, by their own calculations, it was minus £1.87 loss  i cant screenshot it, its too large a file sorry. i did try.

Minnie Mouse

I have also been trying to work out the special dividend and as said above it works out you will be worse off so how can they say you are getting 50.9 pence a share and you end up worse off ? would it be better to sell your shares before the cut off or wait and hope the price rises

Paulie

How will this effect SAYE schemes later than 2015 who are not entitled to special dividend.

Wilted20

No other SAYE scheme is affected, besides the Tesco U.K. 2015 5-Year scheme, Paulie.

Wilted20

Quote from: Wilted20 on 28-01-21, 12:53AM
The consolidation ratio is quoted as 19 existing shares : 15 new shares

1000 existing shares will consolidate to 789 new shares

At yesterday’s closing rate of 244.90p, the existing shares will be worth £2499.00

At yesterday’s closing rate of 244.90p, the new shares will be worth £1932.26

The special dividend on 1000 shares will be £509.30, meaning a combined value of £2441.56 (an overall loss of £57.44)


My apologies, I mistyped a figure, owlnight.

Corrected here, and rounded up per their example:


The consolidation ratio is quoted as 19 existing shares : 15 new shares

1000 existing shares will consolidate to 789 new shares

At yesterday’s closing rate of £2.45, the existing shares will be worth £2450.00

At yesterday’s closing rate of £2.45, the new shares will be worth £1933.05

The special dividend on 1000 shares will be £509.30, meaning a new combined value of £2442.35 (an overall loss of £7.65)

Wirey2020

The reduction of shares overall the price will go up...basic supply and demand principles still apply here.

grim up north

Share price WILL go up or should?

owlnight

Quote from: owlnight on 28-01-21, 03:03AM
just read this,
What will happen if I have an SAYE scheme which reaches maturity on 1 February 2021 and I choose to use my savings to buy shares at the SAYE option price?
If you have an SAYE scheme which reaches maturity on 1 February 2021, you will be eligible to receive the Special Dividend on the shares you buy at the SAYE option price if: (i) you enter your maturity instruction to “buy shares to keep or transfer” before the cut-off dates shown below; and (ii) you do not sell the shares before 6.00 p.m. (UK time) on 12 February 2021. The Share Consolidation will also be applied to these shares.
The relevant cut-off dates are as follows:
• Booker 2017 three-year SAYE scheme â€" 2.00 p.m. (UK time) on 1 February 2021
• Tesco Irish 2015 five-year SAYE scheme â€" 6.00 p.m. (UK time) on 3 February 2021
• Tesco UK 2015 five-year SAYE scheme â€" 6.00 p.m. (UK time) on 5 February 2021
If however you: (i) enter an instruction to “buy shares to sell” before the cut-off times shown above; (ii) enter any type of maturity instruction after these cut-off times; or (iii) sell your shares before 6.00 p.m. (UK time) on 12 February 2021 where you have entered your maturity instruction to “buy shares to keep or transfer” before the cut-off dates, you will not be eligible to receive the Special Dividend on the shares you buy at the SAYE option price and the Share Consolidation will also not be applied to these shares.

HELP, Is it me, or are those two paragraphs (top, then paragraph below cut off dates) regarding “buy shares to keep or transfer” conflicting? i read it as intruct before cut off date to buy shares to keep and shares consolidation /bonus applies? ........but then im reading as the same instruction below the cut off dates, as the same option to buy/keep, share consolidation doesn't apply?? 

Wirey2020

Quote from: grim up north on 28-01-21, 11:53AM
Share price WILL go up or should?

It’s an educated conclusion, the share price will go up as a result...it will sharply go up to around £3.10 then overtime supply and demand principles (save for any outside interference that may affect the market) will mean that the price will climb steadily.

rogerthedodger

I can’t get my head around who benefits and why?
So am I right in thinking we get nothing

Minnie Mouse

That’s the conclusion I have come to 😒 as getting 50.9p for each share ends up being what you lose when they consolidate the shares down

Mohamed

The share will go up in value after the consolation.

BUY TESLA STOCK


grim up north

Where does the 'extra' money go? Using Wilted's figures and a loss of £7.65. Who gets that money?

Wilted20

Grim up north - When the shares are consolidated, I believe that the majority of the fractional excess is donated to charity.

I read an article about share consolidation, and it states that the stock market listing price is re-adjusted, to compensate for the reduction in the overall number of shares in the company.

If this is the case, any SAYE schemes which are due to mature after the consolidation, should be worth more (as the number of options and the price agreed cannot be changed)?

owlnight

yes wilted20,
thats the conclusion i eventually came to. so im not doing my instruction untill after the 12th feb, unfortunately you don’t have the same option for any you already have. and i wont be voting for it either. thats if i have fully understood it, they dont make ot easy!!! if imhave got it wrong, please enlighten me👍😁

Millie

Quote from: Paulie on 28-01-21, 08:33AM
How will this effect SAYE schemes later than 2015 who are not entitled to special dividend.
surely shareholders will vote against the consolidation??  No one wants to lose money on shares

NightAndDay

They voted in favour of the Asia deal, this would have been a natural consequence of that decision, the alternative would be for shares to lose value as a result of Tescos reduced asset portfolio.

Millie

#70
So will the share price go up ? 

londoner83

Firstly it's largely irrelevant how you vote. The big institutions will decide to back the deal and I fully expect it to pass.

Secondly the current share price has already factored in the "bonus" from the sale in Asia. The price is likely to fall once it happens as the business can't generate those funds again, hence the consolidation to reduce the number of shares in existence to attempt to keep the price where it is now.

Anyone expecting huge increases will I believe be sadly disappointed. However as in all dealings with stocks and shares investments can rise and fall.

BlueToon

My difficulty with this is,
Do I keep the dividend as re-invested shares (with the potential to sell some if needed later)?
OR
Get the dividend in cash and just accept the fact that I will have fewer shares after consolidation?
Decisions, decisions?

BUY TESLA STOCK

Cash in and buy some AMC and GameStop stocks or better still American Battery Metals Corp. Best of luck! >:D

owlnight

Quote from: BlueToon on 29-01-21, 12:14PM
My difficulty with this is,
Do I keep the dividend as re-invested shares (with the potential to sell some if needed later)?
OR
Get the dividend in cash and just accept the fact that I will have fewer shares after consolidation?
Decisions, decisions?
yes, i was pondering this, but a thought i dont know the answer to is, ...do re…invested dividend shares have to held for 3yrs before selling tax free? anyone??

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