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trb
''with regards to the tax implications''
and what are they?
Surely, the- 2bn cancellation of shares means Tesco is a tighter Market Cap outfit going forward for the next 10 years , less surplus shares slugging around and more demand ! - after disposal - obviously and a more attractive option after settling the Pension Deficit for some years. As Paul Young said , the tighter the fit, the closer the knit. GLA I'm in have been for a while. LTH IMO GLA
Well if we are weaker now because £5 billion is wiped off the market capture to the SD this could just could be a takeover target by mr Canadian billionaire that just got blocked in France , maybe why Sainsbury’s shares are flying at the moment.
Personally the SD is a complete PR disaster for Tesco in my option now the pennies are starting to drop with regards to the tax implications as one of my colleagues came up to me ranting about it today : still the shares have nudged nearer that 250 mark so not al doom and gloom
Fird
''So what will be the value of each new share? Does anybody know?''
Of course not. The market determines the value of each share.
Using your figure, 9.793 million shares will become about 7,731 million shares.
Todays market cap is about £24 Billion.
About £5 billion of capital that the market takes account of in it's current valuation is being returned to shareholders.
If the return and consolidation were happening at this precise moment, then you could give the company a market cap of £19 Billion. Calculated with 7,731 million shares, that would give a share price of about 245p per share
Was pondering selling at 250 today, but still hoping this has 260 in it in the coming couple of weeks ..
To make no impact on SAYE members is the only thing I can see.
Or perhaps they are colluding with this website to drive traffic here to discuss it every day constantly...other than that I don't see much other benefit.
It seems like a pointless exercise to hand a special dividend of 51p p/s to shareholders only to essentially take it back in the consolidation. I get that the dividend without the consolidation would impact the share price but this special dividend is a farce. Any other thoughts?
The circular states that the market capitalisation used is that as at market close on 22 Jan 2021. The capitalisation on 22 Jan 2021 was (No: of shares in issue 9793m X share value 241.9p=) 236,892m.
Old 19 shares, after consolidation will be reduced (every 100 will be reduced to approximately to 79 shares). So what will be the value of each new share? Does anybody know?
An employees SAYE share offer price is not altered to reflect dividend INCOME leaving the company .
Without a consolidation to reflect the CAPITAL being returned then all SAYE option prices would have had to have been altered.
that would be because the consolidation reflects the amount of shareholder capital that is being returned ,and so wouldn't affect the discount that employees were offered at the outset.
The definitive answer is that colleagues will get consolidates shares at the pre consolidation strike price
Just voted for sd and share consolidation in line with directors unamasly believing its best for shareholders.
Panderman Every little helps
How romantic.
"Chartwise IMO this is pretty significant resistant to break through."
Realitywise ... broken through already
Many shoppers will be taking advantage of the new Valentine Meal Deal at TSCO which pretty much covers every dietary preference. Plant based diets, Fish and Meat. Alcoholic and non alcoholic. Footfall in February should continue to be high as pubs and restaurants remain shut. No doubt an advertising campaign will be underway in the next few days.
https://www.dailyrecord.co.uk/lifestyle/money/tesco-launches-15-valentines-day-23392462
Look around, if you dare go out, Tesco is coining it in, online deliveries, can't get one, click and collect, if you're lucky, stores flat out, special div imminent, got to be the share to be in.
Hopefully finish above 250p today.
Last seen almost a year ago (mid/late February).
@George007
Possibly you'll see that this week the way things are going.
Fingers crossed.
Hi Colin
How does it work?
https://www.lse.co.uk/rns/TSCO/notice-of-general-meeting-1ln7jr9c7usdj1m.html
Reading the above should give you a good picture.
If you have any questions after that do post them. There are some helpful people here who will try and fill in any remaining gaps!
Good luck Spindler with your next investment. Profit is a profit.
Chartwise IMO this is pretty significant resistant to break through.
Will still follow out of interest and an education. I can't help but note the volatitily in the time it took me to write my first message from low 2.41 to above 2.47.
Hi, am I correct in saying that we are going to get a special dividend of 50.93p and the number of shares we own are going to be reduced. How on earth does this work and at what point will our holding be reduced , can anyone assist please, thanks, Colin.
I jumped ship on these yesterday earlier than I wanted to. I have seen too many profits evaporate by holding out and took what I had. Without the consolidation shennigans I saw these following the broker forecasts. I am sure there are reasons for the approach but I don't see it and nothing here in the discussion has converted my doubts. To my mind share buybacks can achieve share consolidation and considering they didn't need to borrow money to achieve this unlike so many companies hollowing out the business by borrowing to buy back shares, I just don't know why they didn't go this route or the alternative to pay down existing debt. This seems to me the opposite of a stock split which generates excitement(justified or not) by giving you more shares this in my humble opinion has patently done the opposite. I didn;t even have the SD tax issue but nah no longer felt comfortable with this holding. Just my opinion and ultimately that's what I had to follow.