CORPORATE ACTION: Share plc - Take over share and cash offer...

Discussion of the proposed Cashback Investment Club

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Boro Boy
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Re: CORPORATE ACTION: Share plc - Take over share and cash offer...

Post by Boro Boy » Mon Feb 17 2020 9:57pm

garindan wrote:
Mon Feb 17 2020 9:49pm
Boro Boy wrote:
Mon Feb 17 2020 9:27pm
Fingers crossed for you but as I said earlier I couldn't see any details about that technicality for you; so hers's hoping you don't end up loosing out because you have less than 1000 shares - perhaps you should find out for sure and if necessary the club should consider purchasing another 500 shares to avoid missing out...!?!
To be fair - I think it is pretty clear in the terms of the offer statement what the situation is if you read the extract I have quoted and the following paragraphs. It is true, we might get a pro-rata lesser amount if the amount of cash payable in total is greater than £16.2m but investing more is perhaps not the answer.
Pro-rata of the money side as some form of compensation for not having 1000 shares has to be finalised but the "fractional" comment seems in your favour but pro rata in shares would seemingly only give you less than 1/2 a share against your 500 shares - I don't know if that will happen...? Actually you need in excess of 1000 shares to accumulate 1 ii New "A" Share...!!!

garindan
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Re: CORPORATE ACTION: Share plc - Take over share and cash offer...

Post by garindan » Tue Feb 18 2020 10:42am

Boro Boy wrote:
Mon Feb 17 2020 9:57pm
... but pro rata in shares would seemingly only give you less than 1/2 a share against your 500 shares - I don't know if that will happen...?
As I have said - if you read the document it says what will happen and the shares will NOT be done pro-rata for those whom have a total new share allocation of less than one, when the number of new shares are calculated on a rounded down basis. We have less than one, so when you round down we'll be due no new shares but shall receive cash for our holding on the basis written. I do think it is pretty clear to be fair, so not sure why you think it isn't?
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Re: CORPORATE ACTION: Share plc - Take over share and cash offer...

Post by Boro Boy » Tue Feb 18 2020 1:49pm

garindan wrote:
Tue Feb 18 2020 10:42am
Boro Boy wrote:
Mon Feb 17 2020 9:57pm
... but pro rata in shares would seemingly only give you less than 1/2 a share against your 500 shares - I don't know if that will happen...?
As I have said - if you read the document it says what will happen and the shares will NOT be done pro-rata for those whom have a total new share allocation of less than one, when the number of new shares are calculated on a rounded down basis. We have less than one, so when you round down we'll be due no new shares but shall receive cash for our holding on the basis written. I do think it is pretty clear to be fair, so not sure why you think it isn't?
OK glad you're confident with that. Perhaps you can have a word with Fenton Ludden (see further up the thread) and put him straight. ;)

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Re: CORPORATE ACTION: Share plc - Take over share and cash offer...

Post by BeautifulSunshine » Wed Feb 19 2020 9:11am

garindan wrote:
Mon Feb 17 2020 5:55pm
I've just read on the AVN forum that those who hold under ~1000 shares will get 41p cash per share and not get the 4.1p a share and a proportion of new ii shares. I haven't checked, but if this is the case we would have had the following outcome:

- cash sum of £205.00, when we paid £203.50 for the 500 original shares
- had member benefits for 5 years, saving us at least £2.25 per trade during that period - we have bought 31 shares and sold 23 of them during this period, so we should have saved at least £120.00 on our share purchase expenditure during that time
- had dividends of £12.80 (6.3%)

So that will have been quite a decent deal for us all considered - £14.30 clear profit (7%) and £120+ saving on costs over 5 years, set against a £203.50 outlay :thumbup:
Well done everyone. I'm pleased with the overall return.

Buying an additional 500 shares to take our total to 1,000 shares would be a knee jerk reaction with no guarantee of meeting the objective of acquiring ii shares.
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Alex72
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Re: CORPORATE ACTION: Share plc - Take over share and cash offer...

Post by Alex72 » Tue Jun 23 2020 1:11pm

I am a complete novice at all this but if I have followed the calculations right if have worked out 1200 shares x takeover amount per share and I work it out to equal 1 share probably done something wrong but if I haven't then seems better taking cash?

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Re: CORPORATE ACTION: Share plc - Take over share and cash offer...

Post by Boro Boy » Tue Jun 23 2020 8:19pm

im183979 wrote:
Tue Jun 23 2020 1:11pm
I am a complete novice at all this but if I have followed the calculations right if have worked out 1200 shares x takeover amount per share and I work it out to equal 1 share probably done something wrong but if I haven't then seems better taking cash?
Share plc Holding____ New ii Shares
1196_________________ 1
2392_________________ 2
3588_________________ 3
4784_________________ 4 etc...

Any level of holding above or below these targets acquire cash for shares held and not used to convert into new ii shares.

I hope that helps - I would finish with that well known phrase "...fill yer' boots!" it doesn't happen like this many times and I don't know what you are waiting for...!?!
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Re: CORPORATE ACTION: Share plc - Take over share and cash offer...

Post by BeautifulSunshine » Sat Jun 27 2020 6:15pm

The imutual Cashback Investment Club looks set, by virtue of good fortune*, to be due, in respect of Share PLC holding the following:
Number of Share PLC Shares = 500
Price Per Share = 41p
TOTAL DUE = Number of Share PLC Shares X Price Per Share
TOTAL DUE = 500 X 41p
TOTAL DUE = 20500p
TOTAL DUE = £205.00
The Share PLC holding arithmetic is:
Buy Price = £203.50
Dividends = £12.80
Share Trade Discounts = £???**
Total Due = £205
Excluding any discounts the imutual Cashback Investment Club has made a profit of £14.30, a respectable 7% profit.

* Good fortune because the shares swung wildly and at one point our holding significantly halved in value.

** It would be worthwhile to know the value of the discounts and how well the decision worked for us at the time.
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Re: CORPORATE ACTION: Share plc - Take over share and cash offer...

Post by garindan » Sat Jun 27 2020 11:38pm

AAAlphaThunder wrote:
Sat Jun 27 2020 6:15pm
Excluding any discounts the imutual Cashback Investment Club has made a profit of £14.30, a respectable 7% profit.
Hold your horses - we are not confirmed on this yet. It might be we get less than expected for our holding. We'll know soon enough! :thumbup:
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