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Hi, I'm very beginner.
The takeover, SP rising. what will be happening..so please advise, should sell here or keep even after ex div?
Don't think there is a definitive answer to that.
Sometimes one bid will flush out another higher one, but not always.
The old maxim is that it's never wrong to take a profit so if you have one then you're in a good place. Consider how much more there is in it if you wait and whether if meanwhile while you wait for the payment the money might do better
elsewhere.
My own experience leads me to favour the bird in the hand method.
.
Niki
In essence -
i) an offer has been made for your shareholding 685p per share
ii) it is just that - it is an OFFER - with no guarantee at this point that it will be fulfilled
iii) a dividend of 8p has also been declared - I think its fair to say that element is pretty much nailed on but you need to be a shareholder at ex-div date 12th November and that will be paid - 8p will come off the SP at that point anyway but not off the offer price
iv) further bids may be forthcoming - if so then the share price could increase
v) if the offer lapses or is not accepted at a shareholder EGM then the SP will most probably fall back
vi) if the offer is accepted then there should be no dealing charges and 685p/share will be credited to your account at some point in the future (they will RNS a timetable in due course)
vii) If any counter offers by other interested parties are received then higher offers may be made and the SP will increase
The decision and judgement is yours and yours alone - do you hang on and hope the sale goes through for 685p/share - there is a chance that due diligence means that the offer is declined or doesnt go thru - in which case the SP will possibly return to previous trading levels 450-500 - OR should you sell quick now (656 as we speak) and bank some quick profit its all a matter for your personal risk appetite and personal circumstances - there is still possible up and down sides - its the reason we all play the game.
Mathsman, Wolfbag2,
Thank you for your input!!
You explained very clear...
Hi Wolfbag... I wonder if you can help me ?
So then, if I hold on to my shares, will I receive an offer to buy them from me for £6.85 at some point ( assuming the sale goes ahead ) ? So I just wait for a communication which will arrive in due course ?
Thanks so much
"So I just wait for a communication which will arrive in due course ?"
No. If you sit on your hands, your shares will automatically be transferred to the new company and your share account credited with the full amount of offer value with no additional charges.
If the offer falls through the shares will drop like a stone!
You could consider selling a chunk now and then ride it out with the remainder, although you will incur some trading costs.
GLA
Thanks CynyC..... I haven’t been in this situation before so I feel a bit thick !
Are you saying that, if I do nothing, my shares will automatically be bought by the new company for £6.85 and my account just credited with the proceeds of the sale ? Thanks again.
Spike - Yep totally correct - you'll also receive your divi
Ageos - Noted !
At 672 it appears the II believe it is a done deal. Funding is in place and DD shouldn't be too much of a concern
685 (soonish) v 672 (now) - less than 2%
I can make more than 2% today with that money - nice profit over all
GLA
Thanks Wolfbag.... very much appreciated :-)
No mention of the Preference Shares. What happens with these?
Still 6 months for this deal to close. Assuming the mid point of Q2.
(685 / 677) ^ 2 -1 = 2.4% annualised. However, potential future dividend payments may effect this.
https://mergerarbitragelimited.com/rsa-insurance-group-rsaif-acquisition/
Could there be another Divi before takeover is completed.