I'd still like a few of the reconstructed shares - when it happens. But shades of BOI emerging from the grave several years ago, I initially was burned because of a second BOI call for capital. This time i'll avoid aib's (initial?) call for capital and buy when the sp drops back, prior to the 2nd call! The reasoning has something to do with aib struggling to get core tier one past 10, down the road.
2 theores....1st theory.... i think it goes back to investors fearing a royal mail scenario ,where their investmant was capped in the ipo and they want a potential share pack before ipo like permanent tsb did to guarintee their stake in aib in ipo .2nd theory.... by the time 25 percent of aib is sold it will be worth even more than today so the .025 price target of cantor fitzgerald will problbly naturally increase .
here is how the govt reached the 99.98 stock ownership... from what I can gather the 500b block is a separate block with a par of 0.01..all the prior stock issues had different valuations. Note 57, 2011 stmts, pg 360 mixing these blocks of stock is like mixing apples and oranges.. something does not add up in this EGM... > - On 13 May 2010, the Group issued 198,089,847 ordinary shares to the NPRFC in lieu of the annual dividend (amounting to € 280 million) on the 2009 Preference Shares pursuant to the Bonus Issue 2010 (note 46). Following this transaction, the NPRFC held 18.61% of the ordinary share capital of AIB; - On 23 December 2010, arising from a Direction Order issued by the High Court, the Group issued 675,107,845 ordinary shares and 10,489,899,564 convertible non-voting (“CNV”) shares to the NPRFC. Net proceeds from this issue amounted to € 3.7 billion. At 31 December 2010, the NPRFC held 49.9 % of the ordinary shares of AIB; - On 8 April 2011, the CNV shares were converted to ordinary shares on a one-for-one basis. Following this transaction, the NPRFC held 92.8% of the ordinary shares of AIB; - On 13 May 2011, 484,902,878 ordinary shares were issued to the NPRFC in part settlement of the annual dividend due on that date pursuant to the Bonus Issue 2011 (note 46). The residual of this Bonus Share 2011 entitlement, amounting to 762,370,687 ordinary shares were issued to the NPRFC on 27 July 2011 following the increase, at an EGM, of the authorised ordinary share capital of AIB; - On 27 July 2011, AIB issued (i) 500 billion ordinary shares of € 0.01 each to the NPRFC at a subscription price of € 0.01 pershare, the ordinary share capital having been renominalised on 26 July 2011 (note 46), (ii) € 1.6 billion of contingent capital notes at par (note 45) to the Minister for Finance. These transactions raised € 6.6 billion of capital for AIB. Following the ordinary share issues, the NPRFC held 99.8% of the ordinary shares in AIB;
523,438,445,437 0.0025 1,308,596,113.59 0.041 21,460,976,262.92 0.039 20,414,099,372.04 Financial Times shows mkt value of 20.4b based on 0.039 ... trades today are showing a future value of 20.4b based on this 0.04 trades.. the 0.0025 is a fictitious value.. bank would be worth 1.3b which it is certainly not. > something does not add up...
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