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But agreed, we wouldn't get the special dividend
Rosewall
Tbh not a problem the share consolidation as I am building a position here over the next few months. Bought my first tranche last week. Happy for the sp at these levels and even happier to use any SD payment for that purpose.
DT
Quite the opposite. It is a brilliant deal. We get to save £x per month and, at the end of the three years can either take the cash back or buy shares at £1.98 irrespective of what the then current price is, we can't lose. If consolidate puts the share price closer to £5 then we still pay £1.98. A nice bonus
Lead
It won't be adjusted. The original circular said £5 billion for shareholders AND the consolidation. Consolidation is not an afterthought, it has always been there
Expect or hope the dividend gets adjusted accordingly to represent the consolidation.
@LG4444 I suspect what will happen is that the shares you hold in the saye will not be consolidated as they don't qualify for the dividend and therefore will still represent the same value post the consolidation.
Apologies exact time it was executed before bein reported to the market ....
Hard to determine whether or not it was a buy or sell due to the spread being so tight and not knowing the exact time it was reported to the market. Too many trades going through with all these A trades.
If the option prices on the ongoing saye's cannot be adjusted to reflect the reduced share price created by the share consolidation then some of the ongoing saye's will represent a poor investment. I would guess many would bail out and maybe use the savings returned to them to purchase shares that would likely be cheaper than the original option price. It will be interesting to see if there is a contingency plan for these plans.
22million at 1212 was showing as unknown now showing as sell.
The share dividend, the share consolidation and shareholder approval was stated very clearly in the original circular and I have raised the issue here several times so that newbies were aware of this. Some posters were fixated on the special dividend and overlooked the accompanying consolidation.
I have raised this several times since October and kept very quiet before hand. I have checked the rules and the offer was £1.98 per share. There is absolutely nothing in the rules that I can see that will allow a change in that price. Based on that I piled in with an increased monthly amount :-)
I wonder what will happen with saye plans that are already running. Me and hubby have 6 between us. Once the shares are consolidated will an adjustment be made on the option prices of these ongoing plans? If not, then they will very likely make no gain and all will not be worth continuing.
Yes it's always been my intention of selling before the special dividend .. I'd hoped todays news would light a fire under this one ..
Hey Jiffy I'd say it has to be priced in, or let's say 90% prices in. Chances of shareholder approval are incredibly high and the market knows it. What was the must be the value of the Asia sale on a pe ratio type basis? Must be similar to the price they achieved. Not to mention they are plugging 2.5b pensions, handing back 0.6b to borat and cronies
Deemed fair value. I think we'll see some sp appreciation from here, but not much
How can it be priced in if the special dividend has to be voted on by shareholders?
As previously announced, Tesco intends to return c. £5 billion of the net proceeds to shareholders via a special dividend, together with a share consolidation, and will also make a significant pension contribution of £2.5 billion to the Tesco PLC Pension Scheme shortly following completion. The special dividend is expected to be paid on or around 26 February 2021, conditional on obtaining shareholder approval at a general meeting which is expected to be held on or around 11 February 2021 (the "General Meeting").
Todays RNS
A circular containing further details of the special dividend and share consolidation, as well as a notice convening the General Meeting and further details about the resolutions to be considered at the General Meeting, will be sent to Tesco shareholders on or around 25 January 2021.
Im surprised this is considered priced in? a 50p dividend has been mentioned that would make the true price roughly 175 which seems too low?
Great news. You could use the special dividend to buy more shares at the adjusted price. If the yield remains the same then this is a great income share.
22% div. I do hope see an extra 10p on top of the current share price though
22% div. I do hope see an extra 10p on top of the current share price though
The Asia sale money is already priced into the share price it seems, we have it already, but maybe we see a small rise over the next few weeks
It doesn't feel like a special dividend if we are to get a reduction in the number of shares that we have, I fully understand that when a company pays a dividend, that money is deducted from the share price on the ex dividend date, I don't see where we are getting the extra money from if they take say 25% of our shares from us. I would have thought that anything extra should not effect the SP.
Have we had previous indications to the consolidation that was mentioned. So we’re do we see this going before the 18th then plus 30p maybe.
Wonder if finally seeing the announcement of the special div will lead to a mini bull run in tesco shares, good buy for income funds wishing to show they are maintaining a large div, add some tesco to increase the average payout.... From a tax perspective not great though for small investors specially higher tax rate payers.... Some might even wish selll before the div, buyback after.... (not advice)
Great we have a date. Now to see how this will affect the share price given that I'm sure Tesco intend to keep the regular dividends at the same level.