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Thanks for clearing that up, no I'm not in it just wondered why the increase automatically thought a takeover.
there has been a share consolidation - assume you are not in this? Details issued to shareholders weeks ago. 5/1
It looks like a takeover, but who? I had to refresh my screen as I thought it was another mistake by lse, 400% nice!
Has someone made a bid for RSA? Asking price has shot up but can't trade the shares......
Our priorities will be consistent: to serve customers well; operate with capital strength; and focus on driving shareholder value.” where is my sick bag - rule Britannia.
Commenting on the Q1 2014 Interim Management Statement Stephen Hester said: "There has been intense activity in the first quarter of 2014. We set out a clear action plan in February to transform the performance of the business and have made a good start in implementing it. We are especially grateful to shareholders for supporting RSA’s new direction and the rights issue which has now completed. During the quarter we have also taken action to address underperforming portfolios, the results of which can be seen in our IMS today. Underlying premium and profit trends are generally in line with our expectations. Poor weather in the UK, Ireland and Canada negatively impacted first quarter profits. There remains much to do and we operate in a challenging and competitive market place. 2014 is a foundation year, but one where we hope to make solid progress. Our priorities will be consistent: to serve customers well; operate with capital strength; and focus on driving shareholder value.”
Trading Updates This Thursday
Hope you are right. Can see a big sell off when price initially hits that mark which may force the price back down.
I can wee this passing the pound mark by COP Friday.
Slowly falling SP today despite FT100 going the other way
Agreed the sp has recovered to pre-RI levels quicker than is usual, but this is just following the pattern of every major RI I've been involved in over the last 40 years - the sp does eventually recover. I bought IMT shares in their RI @ 480p, they're now worth over £20, and the recent RI's in NEX and NG have also been very profitable. If the company is basically sound then a RI is the perfect way to get a cash injection to see them through a difficult period, along with the £300 million from the sale of their Eastern European operations they are now sitting on close to £1 billion to strengthen their business. The City obviously like the terms of this RI as the sp has risen 12% from the ex-rights price and is now within a whisker of the pre-RI sp of 95.2p. Fully expect this to be 100p+ soon - barring Stock Market falls - and with a token 2014 Interim div being talked about and the prospect of a return to divs with the 2014 Final this should be back to pre-trouble levels within 12-18 months IMHO. ATB.
RSA has today announced the sale of its operations in the Baltics and Poland for £300m. The transactions are expected to add around £200m to the Group’s tangible net assets, improving the Group’s capital strength.
I agree that the cash helps a bit, but not to the extent that 37.5 % more shares has no effect on the SP. Most sp's fall after a substantial dilution. Time will tell.
One of the main reasons that RSA is now worth more than it was before is because we have just given it a £750 million cash injection in the RI, and it is now in a stronger position than it was before. ATB.
Seems logical in one way. However, it is a fact that an SP always goes up once divis start or resume. Over on the Lloyds board everyone is expecting a jump in SP once divis resume aftyer a 5 year wait.
Look at it this way ,If you dont have to pay rent ,Would you be worth more and better off !
That should read "less not more".
Lunatic are you trying to live up to your name ? The lack of a dividend makes them worth less lot more.
Its worth that much more because is isn't paying out a divi.
Does anyone else find it incomprehensible that the SP is similar now or slightly higher than it was before the rights issue ? There are now 37.5 % shares in existence. It's hard to think the company is suddenly worth that much more. I wonder if it will drift down from here ?
Apprentice - thanks v much, appreciated..
Yes of course, they count exactly the same as the standard shares. The hope is that RSA will start to pay dividends again
Could I ask what might be a dumb question? Do shares obtained via a rights issue qualify for any future dividends? Sorry if I'm appearing a bit dumb here...
At the AGM in May, they will seek shareholder support for a 5 for 1 share consolidation. The Notice of the 2014 Annual General Meeting includes resolutions to approve a sub-division and consolidation of the Company’s ordinary shares. Details on the proposed sub-division and consolidation are set out in full in the Notice of the 2014 Annual General Meeting available on their website at www.rsagroup.com/agm2014. This notice states: "SUB-DIVISION AND CONSOLIDATION OF ORDINARY SHARE CAPITAL We are proposing that the Company undertakes a sub-division and five to one consolidation of its ordinary shares of 27.5p each, the mechanics of which are set out on pages 5 and 6 of the Notice. The Company currently has a very large number of ordinary shares in issue. This means that a small movement in the share price can result in large percentage movements and considerable volatility. The Board believes that the sub-division and consolidation would, if carried out, result in a share price and nominal value more appropriate to the Company in the context of the UK market. We will therefore be seeking shareholder approval of the sub-division and consolidation at the AGM." Full details of the mechanics behind the Sub-Division and Consolidation can be found in Paragraph 19 on page 5 of notice.
Is this definitely going ahead?