Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Sounds good Dinoken, previous float bonus shares have been issued more than 12 months later from memory. Also, some were issued in installments to make it easier for cash strapped SID to take part. This way pre and post issue share price would be strong with nothing in it for shorters. Any 1st day premium would be OK politically as nwg being returned to the private sector post bail out, as opposed to selling off state industries to those 'lucky enough' to be sitting on spare cash.
Does this mean that offer price will be market price and the 'Bonus' shares awarded after say 1 year are the 'discount' !?
If the serious money believes (1) there will be a SID-type offer and (2) it would have to be priced at an attractive discount, I would expect some serious shorting before any official announcement. If/when that occurs, I'll sell. Simply because in my experience the shorters get it right more often than not.
Couldn't agree more! I just don't think that's the HMG plan
Barcing Bank just invited me to join their email list for the NWG Offer ! Heard nothing from NWG about it ...
Why is it a problem? Rather than put he whole lot onto the market with some kind of Sid offer, why not just drip feed them as and when over say the next six months? With the recent performance, there should not be a shortage of buyers wanting a punt. I will probably add a few more myself if a short dip occurs.
NWG will end up buying 15% of the 29% left to purchase leaving 14% which will be easily disposed of.
The general view seems to be that this is going to be a difficult balancing act. Unlike previous de-nationalisation offers the government can't simply offer the shares at a heavy discount to market value to encourage the Sids to buy (you could see class action lawsuits if they did) but if it doesn't what incentive would there be for the Sids to buy? Personally, on the face of it, I think it's an impossible problem to solve to all parties' satisfaction.
The only solution that might resolve the problem is if the government was to, say, offer their shares with some form of benefit attached i.e. wrap up the discount that they might normally consider offering he Sids and converting it into some other monetary form e.g. a staggered tax rebate over a period of several years (at the end of the day all of the money goes into the same pot).
Staggering the tax rebate over a period of, say, 3-5 years (with pehaps a provision to pay any remaining tax rebate in full on death) might make the Sids less inclined to rush and sell their new shares immediately, particularly if it might result in them crystallising a loss that they might have to wait several years to cover from their tax rebate. I would not make the tax rebate conditional on them retaining the shares (this would be too complex to regulate). Most, if not all, online brokers now require you to provide your NINO, so it should be possible for them to make applications on behalf of their customers for both the shares and the tax rebate fairly seemlessly.
So, for example, if the government wanted to sell its shares in tranches of (say) 500 shares at a discount of (say) 20% to the current share price (say £3 per share), they'd offer each tranche at £1,500 (500 x £3) plus a tax rebate of £300 (20% x £1,500) payable in equal instalments of (say) £100 per annum over a period of 3 years or £60 per annum over a period of 5 years.
Implies a dip and then recovery I assume
Post offer, removal of existing 'gov interference discount' will benefit sp.
Thanks for the reply and I agree any sale will be competitively priced but I guess therein lies the question, what will the offer do to the overall share price and on the basis that view is negative, is now the time to lock in a profit at 3 quid odd?
I did not reinvest my dividend and unless this tanked back to £2 I would not buy any more.
Just wish I’d bought more than £1250 at 175!
Maybe they were a bit slow off the mark in doing so Dinoken and £2bn a fraction of their assets. Pension funds have been moving out of UK for sometime. UK seen by some as offering good value now.
Guess who is pulling billions out of UK market ahead of parent NatWest stock sale ! Further selling pressure on the UK market at a time when valuations are already depressed. You could not make it up ..
Elpadre, they're lining up to discredit the sale including the likes of wealth managers....er they would wouldn't they, saying SID is financially illiterate these days.
So given that Hunt has hung his hat on a successful float it has to be attractive to SID and seen as a no brainer risk worth taking and logic says that means competitively priced. Boots already filled.
Im as delighted as anyone to see the sp at 300+ again and am happy enough with the dividend income however I'm getting twitchy about any impending public sale and the impact on the sp should the details be announced. Any thoughts on what the impact may be?
Mine has been reinvested today.
£4 here we come!
No
You mean £3.50 I assume.
£2.50
Hopefully
Divi reinvested at 9 am this morning. Interesting to see where the share price goes now !
How much will get re-invested from tomorrow?
Divi received at 12 noon.
Yep, got mine :)