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@long I am happy with the situation and intend to buy more Aviva with my B shares income, and continue adding on a monthly basis as I see AV as a long term investment....paying good dividends. The point I was trying to make with @Gary59 is that we all have an opinion in what we wanted to happen, but that isn't what IS happening, the B share issue and consolidation is the fact, the reality and no amount of moaning about wanting anything else will change it!
I am here for the long term
I assume that if we want to re-invest then there will be additional stamp duty and dealing costs to pay?
cas
''then buy back your shares with the B share proceeds and you will be in a similar position.''
no you wouldn't, you would be buying a bigger stake in the operational business of Aviva instead of a share in cash doing nothing
cas
''I would have preferred for Aviva to have used the capital to acquire stakes in other companies''
when you get the money, that is what you are free to do
G59
''Wouldn't you rather have had a nice special dividend & kept your original shareholding?''
What?
I am keeping my original shareholding - there is no percentage change in ownership from Friday to today. You or any other shareholder can decide if they so wish to , increase the percentage ownership with a purchase of shares with the returned money, rather than the money sitting doing nothing
I would have preferred for Aviva to have used the capital to acquire stakes in other companies further pushing the profitability and therefore dividends up, but that isn't what has happened. Aviva have issued the B share buyback scheme to return capital to shareholders....if you do not want it, then buy back your shares with the B share proceeds and you will be in a similar position.
LTI - Wouldn't you rather have had a nice special dividend & kept your original shareholding?
g59
''Now, if they declared a special dividend then that would have been a return of capital to the long suffering shareholders.''
what?
a return of capital IS taking place
Broom, Ghuxy is correct but only in that you will receive a return of capital but it is not really a gain as it has been forced upon shareholders. The thinking is that now there are 25% less shares to go around which may improve the SP as may a slimmed down company as far as future growth is concerned. Now, if they declared a special dividend then that would have been a return of capital to the long suffering shareholders.
The divi is good here at this level so a lot of people will buy shares when they receive their cash on the 19th, this may also improve the SP. I hope this helps.
ii allow users to edit the book cost, so multiply the pre-consolodation shares by 1.0169 and subtract this from the book cost (this is the amount of cash to be returned). The % gain should now reflect the real situation.
My take is that if you owned 10% of a pie weighing 100g you would own 10g of said pie. Now the pie is only weighing 75g and you still own 10g (7.5g as shares, 2.5g as cash)....if you trade 2.5g of cash for shares you are back to 10g of pie. Difference is pie is now 75g so your 10g is now worth more to you.
You've gained the return of capital. Just like it said on the tin. You can then do what you want with the cash. Review some of the old threads if you were not aware of this.
Broom
You have gained in having cash to do with as you please, as opposed to the cash just sitting on the balance sheet doing nothing - many shareholders I imagine may want to increase their percentage ownership of Aviva by making a further purchase with the returned money
Tell me if I’m missing something here. They tell us it’s a return of capital to shareholders, however the value of the B shares is approximately equal to the reduction in value of my original shareholding following the consolidation. So I’ve gained nothing.
If, in relation to their wealth and future lives, people have not made themselves aware of order-of-magnitude changes that have been announced and discussed all over the media and elsewhere for months, not hidden away in a single three-line announcement in the classifieds, then perhaps they need a wake up call. Happy to be of service.
Difficult to believe how rude and inconsiderate people can be.
Difficult to believe anyone needs to ask this question after months of announcements, speculation and discussion.
I got a message from HL stating
• On 16 May, the number of Aviva shares you own will drop
• On 19 May, you’ll get a one-off payment, called a return of capital, from Aviva.
But what’s going on? I had 1000 shares in Aviva on Friday and this morning in my holding it shows I have about 750 and the price has gone down.
PMSL you are now the proud owner of a company worth less than it was on friday..
cj
''and the price has gone down.''
it is called a market - you really should have known about the return and consolidation
They are the new consolidated shares
But what’s going on? I had 1000 shares in Aviva on Friday and this morning in my holding it shows I have about 750 and the price has gone down.