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SamSri...no problem, happy to help. goldfish...I have to say I don't know and that makes for an interesting point, but like you I assume it must be the latter option you suggest
The difficulty with this is you have to buy 5000 shares at 25p to get 500 new shares at £2.50 and it all depends whether one values the company at £2.50 a share. If you take a long view and they survive then it is probably ok with maybe no divi much for good while. That is all ok but if there is a market hiccups after the consolidation and they drop to 160p then you kick yourself . AS Isay I dumped my few and not very happy they have gone up !! but this often happens they get ramped up and then come down with a bump. The big boys might decide its ok ad pile in or it might get a cold shoulder or might just scrape through and we get a buying opportunity after consolidation. Lucky dip . Good Luck -anybody
Thanks. Good to see the two sides of the coin :)
Help needed - I am a small holder with 1115 shares - under the open offer I believe I am entitled to 11 new shares @ £1.20 each. Will these new shares be subject to consolidation? i.e. (1115+11)/10=112 or (1115/10)+11=122. I am assuming the latter as otherwise Segro would be making at todays prices approx 94p per share - why buy at 120p when you can buy at 25.5 on the market.
I understand your concerns, but look at the positive...by buying out Brixton they are removing their nearest competition, making them the largest commercial renting company in Europe (or thereabouts). Their assests massively outweigh their current reported debt. A significat amount of their property is around the Heathrow area, which should continue to be commercially viable indefinitely. I expect the share price to be quite volatile after consildation, but in a years time this should be worth a lot more than it is now. DYOR of course
Thanks. As they are industrial landlords and manufacturing on steady decline, I am bit worried.
Hello there, the new shares will be issued on the 30th July so would imagine consolidation will be soon after. The OO is in effect already. I would reconsider selling them, I think the fact that they are on the rise even with the new shares being bought up is a very positive thing, and they should hold steady after consolidation. puddyd you are right they are being cosolidated at 10/1 with the envisaged SP being 210p after consolidation, but the actual SP will be dictated by the market, as pointed out by RJ. I am taking my offer up today
Good afternoon all. I am a newbie to this and in deep red with segro. Instead of going for OO offer and consolidation of shares, would like to sell them. Till what date can i sell them before oo offer kicks in. Thanks for your reply in advance.
Thanks for that! Thinking about selling out on this one to lower my average in RBS and keeping a close eye on the OO had my fingers burnt with recent OO/RI elsewhere. GL
I cuuently hold 5066 shares through Natwest ISA the new holding on my portfolio shows that I will hold only 53 shares so surely the consolidation is 1 : 100?
I use sharecentre, so I'll enquire with them on the commission. Are the current shares not being consolidated to 10/1 and then floating at 210p per share?
Thanks guys, I currently hold 1006 shares which I believe will become 101 @ 210p = £212.10? Currently they are worth 1006*25p = £251.50 therefore if I hold them until July 30th they'll be worth £39.40 less....is this correct or am I missing something?
I have been offered the same amount of shares as you. You don't have to buy them; most people who choose to buy them do so because they have confidence in the company and want the opportunity to gain more shares. I think it will cost you £20 plus any administration fee from your dealer.
Can somebody please explain the RI, I'm a small holder and have been offered 10 shares, do I have to buy these? if so at what price? I appreciate you’re help.
Thanks for the information. I only have a small holding so I think I will take up my RI offer. I know what you mean about the volatility of the sp after RIs...I hold shares in MEC which have suffered badly, and RIs do not seem to have done good things. However I am confident in Segro, especially as a 12-24month investment, and may even top up if there is a drop after the RI. What are other people doing?
Yes you will get 1 new share for every 10 and it will be worth 10 times more. Well when it is issued it will but after then how much in the short term ? Quite a lot of sells after close today -big ones. But longer term will Segro brave it out with all that debt in the bond market will they be that cheap at £2 and pennies. I wonder how cheap they might be after the deal is over -I sold my little holding today. !!! I don't care -plenty of other investments -if they come back cheap I will get in. But more seriously is this a simplistic attitude ? This is not technicals its fundamentals. I suggest if we are on course for economic recovery Segro will get by -but is a quantitative Easing recovery a bogus one suspected rightly by the Bank of England. The only sound recovery comes when improperly blown up inflation is thoroughly squeezed out public spending on public payrolls is demolished and prices of over inflated assets come back to where we can resume with our feet on the ground without devaluing our £ and hiking the costs of our imports of materials and food. !!!! Well I am stirring it up!!!!
Hello, was wondering if someone would mind answering a question for me? If I don't take up the RI offer will my existing shares be consolodated anyway?Thanks
They have ticked up a little. Thi will be a share for the big spender . When the Rights are over what will they be worth 99p or 299p ? Look at the prospect -look at all that debt - look at the assets too -but could they sell any at a worthwhile price to get some cash back-the less desirable assets. As penny shares i loved these but no way will I have them for the £2.20p the company wants! No doubt fortunes will be made and lost along the way.
Well it is clear today 1/10 consolidation and a rights issue. Makes it even more of a long term punt. unfortunatelyyou have to participate to avoid dilution if that bothers you! But are the shares going to be worth 220p ? My experience .......!!! Not in the short term I think. -
My understanding is there willbe no Rights issue. There will be a placing -in effect a dilution. However cheap little hold is Segro-if they survive they will make a nice profit later on. Are they too big to be taken over if things get really bad next year or two? Worst scenarion maybe a distressed break-up but think they are determined and will muddle by. Well a lot hangs on a lift from these Olympics me thinks -the airport areas around Heathrow Brixtons base will be well in demand.
I apologise, I missd this out: SEGRO currently envisages that the Proposed Offer will be accompanied by a further issue of new SEGRO shares in order to raise additional capital of up to £250 million in cash. So there will be a RI for exisiting Segro shareholders, details to come when the offer is accepted and the ball is rolling, and I wouldn't like to say what the RI offer will be. Can't say how this will turn out and the RIs haven't done good things for companies SP recently. But as I said, I'm in this for 10-12months and hope to see good things.
Hi Royan, from what I have read their will be 1.75 SGRO shares for each share in Brixton available as an offer to Brixton shareholders. But it is still all relatively prelimenairy so may fall through yet. So you could probably buy shares in Brixton (which has dropped recently following this announcement) as a route to get SGRO shares, which I am hoping will fly after all this is sorted out. Don't know if Segro shareholders will get any options relating to this.
Hi there would someone be kind enough to give me the deatails of the RI. When its happening, is it too late to be a part of it, what the offer is, when the new share will be put through? And if you have them to hand next weeks lottery numbers. Thanks in advance