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Possible, but can't see that Star.
I think it's more like the top brass made a bog of the job so much that the company got bought out.
They saw the axeman sharpening his chopper and abandoned ship......
time will tell
Now i need a rally in the Pennon SP up to £13 so i can do the same....lol
Rob Luckwell, Water Quality Scientist at Bristol Water, said: “They might look small and innocent, but these little invasive species are a constant battle. They cling to the intake pipe at Purton Water Treatment Works and each female mussel is capable of producing up to 1 million larvae in a spawning season! That’s scary, given the works supplies over 400 thousand homes with water.
“Fortunately, we can control them and have done so for many years, but it is a never ending battle that anyone drinking water at home would never know. As well as standard treatments, like chlorine, I’ve been running some experiments on new methods too.”
Zebra mussels are problematic for nature as well as the city’s water supply, they harm other species as they attach themselves to whatever they can, including the highly engaged native fresh water mussel species.
https://www.bristolwater.co.uk/our-blogs/zebra-mussels
YUK
StarKnight
Or maybe the talented people have just gone out of the door ???
Hah......sure i read in results that they had got some really talented people with Bristol Water deal
Maybe not, or maybe a thin out of the dead wood.
Jumped befre pushed?
Pig
Pig
Yes that is what I would do, but having said that I have just seen an new RNS issued today at 15:55 reporting the directors of Bristol Water have resigned due to them being acquired by Pennon ! I find this strange as I would have thought they would be needed to stay on to handle the cross over of management ??? otherwise chaos could ensue could it not ???> In my opinion !
RNS Announcement
BRISTOL WATER PLC
Pennon Group PLC ("Pennon") today agreed to acquire 100% of the issued share capital of Bristol Water Holdings UK Limited and its subsidiaries, including Bristol Water plc (Bristol Water), (together the Bristol Water Group), from its indirect shareholders; (a) infrastructure funds advised by iCON Infrastructure LLP; and (b) ITOCHU Corporation (the "Acquisition").
Accordingly, by virtue of the Acquisition, Bristol Water has become a wholly owned subsidiary of Pennon and a member of the Pennon Group of companies (the "Group").
Following completion of the Acquisition, Paul Malan and Indradoot Dhar of iCON Infrastructure LLP and Hajime Ichishi of ITOCHU Corporation have today resigned as directors of Bristol Water and the other companies comprised in the Bristol Water Group and Paul Boote, Iain Evans and Neil Cooper have today been appointed as directors of Bristol Water and the other companies in the Bristol Water Group:
The Company's Chairman Keith Ludeman said:
"On behalf of the Board I would like to thank Paul, Indra and Hajime for their support as shareholder representative board members of Bristol Water plc and to welcome Paul, Iain and Neil to the board as directors following the acquisition of the Company by Pennon Group PLC"
The Acquisition is subject to review by the Competition and Markets Authority, with input from the Water Services Regulation Authority (Ofwat).
Pennon is a UK-focused water infrastructure group, comprising South West Water (incorporating Bournemouth Water) and Pennon Water Services. The Pennon Group, including the Bristol Water Group, builds on a strong heritage and history and brings great people and businesses together. The Acquisition will allow Bristol Water to continue to deliver enhanced resilience and water security, benefitting its customers in Bristol and beyond.
Dated: 03 June 2021
For further information contact:
Helen Han****, Company Secretary +44 (0) 7976 731814
Star...
have reached the same conclusion.
Will be selling into any rally. Then will consider buying back after all this uncertainty has settled down.
Maybe a good bit of volatility during first week of July.
Thanks
Pig
Pig
All share prices drop immediately after the ex dividend date by approx. the value of the dividend on average.
No one can advise you what to do but seeing as you are already in profit and the fact that they will reduce your holding by a third post special dividend then i think you have your answer in my opinion
StarKnight
If i'm correct then i might be tempted to sell into any rally leading up to the Special Ex Divi/Consolidation Date.
At a SP of 1,086 im 12.48% up since i bought them a few months back.
Held in ISA so £650 profit.
Really unsure which way to go, so any opinions appreciated
Thanks
Pig
So, have i got this correct?
Say the SP is at £11 on the day. Giving the market cap of X amount. Then you get 2 shares for every 3 you hold; so 33% less shares around.
Would you expect that £11 to increase by c33% so that the market cap remains equal?
Or will the consolidation wipe out the 355p special ?
Sorry if this make no sence, am new to this stuff
Pig
Hi MrAdventurous... I don't think it really matters what share price they have used, it's purely an illustrative price. They have used 1068.5p because this was yesterday's close. Incidentally, Tesco used 242p as their illustrative price in their equivalent blurb (231p on completion, now about 225p).
As I understand it, if you hold 1000 PNN shares on the record date, you will get 666 new shares, £3,550 in cash plus an additional cash payment equal to 0.67 of a share at whatever the price is on (or about) 5th July when the consolidation is completed.
My thinking was once the special dividends hit peoples' bank accounts, they would use it to buy back shares to restore their original holding and that would help drive the share price forward. In Tesco's case this didn't happen. I'm not so sure though with PNN, it's a different kettle of fish and the prospects look good to me.
Personally, I am looking to buy back my original holding (2,000 shares) in the days after the consolidation but before the cash hits holders accounts on 16th July at a price lower than the 1115.765p I sold them for this morning.
GLA. DYOR.
dusty no worries :-)
I have not looked into the acquisition as yet but he share buy back concerns me ! From the RNS today as follows
In addition to the c.£1.5 billion Special Dividend, Pennon intends to initiate an up to £0.4 billion share buy-back programme in order to purchase Ordinary Shares from shareholders (a Share Buy-back). The Share Buy-back is expected to start after payment of the Special Dividend and conclude before 30 September 2022. The Board considers this approach an appropriate means of returning capital to shareholders, whilst providing Pennon with ongoing financial flexibility. In the event that compelling growth opportunities arise in the UK water sector, the Board may decide not to initiate or to halt any Share Buy-back and use the remaining proceeds to pursue those opportunities in order to drive further shareholder value.
It does not state at what price the company will buy back the shares or a percentage below the market rate or above oe even the market rate ! Very ambiguous in my opinion !
@MrAdventurous... They've included the fractional allocations I think (0.66666 of share)
Thanks for the reply Starknight.. and yes my point is invalid really anyway as the money(355p) is being paid out so no longer sitting behind the share value.
Though the other things to weight are the acquisition value(is it a good deal?) and the potential share buyback. But the special div/consolidation does seem a bit like giving with one hand and taking with the other. Though possibly arguable that a bigger company, with a reduced dividend burden will have more scope/reliability for continuing increases to the dividend over time. at inflation+ rates.
Hi dusty and IAPR
Look at this link from Pennon’s website, go down to page 4 heading
Example using 1,000 ordinary shares
https://www.pennon-group.co.uk/sites/default/files/attachments/pdf/pennon-special-dividend-and-share-consilidation-overview.pdf
It shows that after the consolidation you will approximately the same amount of money but with only 666 shares instead of 1000 so I cannot see why shareholders would vote for this !!
Hi StarKnight... I'm fairly certain the 14.97p dividend will be paid on your consolidated holding (666x14.97p), because the ex-dividend date of the final dividend 22nd July. So you will get £99.70 instead of £149.70.
I sold this morning because after my Tesco experience of exactly this type of deal it was a case of once bitten twice shy.
My 15,000 Tesco shares turned in 11,842 shares and £7,639 in cash. They recently announced their H2 dividend (currently XD) and the dividend was maintained from the previous year. So my annual income from this stock has fallen £250 or so. It doesn't help either that this sort of consolidation is intended to keep the share price maintained at pre-consolidation levels, but if this follows the Tesco path, the SP will lose about 5% on top.
This is my opinion, please DYOR.
" and the lower number of shares means the total value of your investment reduces from £10,685 to £7,135"
Is this likely to be the case? Surely if the consolidation will result in a higher value for the reduced number of shares in issue? What they represent will not be changing, other than growing a bit through the acquisition.
I take your point on dividends though.
Also for every 1000 shares before the consolidation say if the annual dividend was 0.14p you would receive
1000 X 0.14p =£140
But after they swap your 3 shares for their 2 shares for the annual dividend you will have a third less shares so only receive
666 X 0.14p = £93.24
In my opinion do your own research
As an investor holding 1,000 ordinary shares at £10.68 each before the special dividend and share consolidation:
Your investment will be worth approx. £10,685 You will receive a cash dividend of £3,550 (1000 X 3.55p)
After the share consolidation (2 shares for every 3 you own) The number of shares you own will reduce from 1,000 to 666 as a result of the share consolidation, and the lower number of shares means the total value of your investment reduces from £10,685 to £7,135
The special dividend of £3,550 is then added on giving you a total of what you started with of £10,685
As you will have only 666 shares after the consolidation you are a third down in my opinion
Hmmm.....
So if the SP is, say, £11 on share swap day & that gives a mkt cap of X
Will not the SP move higher to maintain X?
If not then would not the 355p perhaps be wiped out by the 2/3 swap?
Apologies, new to consolidations
Pig
ref previous message in my opinion do your own research
Hi Pig
On the face of this it looks like something that is too good to be true ! And when something appears to good to be true it usually is to good to be true !
If the special divvy of £3.55 was paid per share with no consolidation then it is a no brainer ! Unfortunately the consolidation means you will have a third less total number of shares after the consolidation,receive the special divvy but gain anything ! Plus as you will have a third less total numer of shares then you will lose out on the annual divys paid per share as you are a third less down.Also if you were to sell your shares after the consolidation you will lose a third of the value you initially paid for them OUCH
Thanks Star
So what is you personal view on the special dividend & 2/3 consolidation? (& others)
Pig
Make sure you read this first :-(
https://www.pennon-group.co.uk/sites/default/files/attachments/pdf/pennon-special-dividend-and-share-consilidation-overview.pdf
The Board is proposing to pay the Special Dividend to shareholders on the register of members of the Company as at 6.00 p.m. on 2 July 2021.