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S
''I still say they should have paid down debt with the proceeds would have been far simpler..''
The decision was made and confirmed at a shareholders meeting. It's history.
I look forward.
So in the low 2.40 range I see. After all this kerfuffle I still say they should have paid down debt with the proceeds would have been far simpler...or did the BoE squal please don't because you know what happens to money when you pay it off it disappears out of the money supply...Debt creates money Debt cancellation destroys money although JP Morgan 9 (the Man) would have said fiat currency because only gold is money everything else is credit
That would make sense if they haven't finished the process... thanks.
are you sure that they have completed the consolidation on your platform. If not, then that would be a reason for trading not to be avaiable
How much of the returned capital this month will be reinvested back into Tesco is a question that investors may want to bear in mind.
I invested more on Friday after seeing the recent fall in the Xsd/pre consolidation notional price from about 197 to 188p, thinking that may have occurred due to investors concerned with tax implications and selling. About 51p per share being returned will have to go somewhere.
Anyone else having issues using Eqi this morning... I click on buy option and it takes me back to the search option,,,,?
at about 243p
y11
I think you are a bit lacking in grey matter.
What is the connection with my buying on Friday and the price tomorrow?
Wow you’ve changed your tune long term, why would you buy you’ve been banging on all weekend about how they will open the same on Monday and tax implications! And now you bought on Friday? Are the drugs wearing off
I will be happy to purchase further Tesco shares on any significant fall in share price.
tomorrow , but I am hopeful that Tesco can get an increase in share price in the coming months along with the rest of the market, as we start to recover from Covid 19. Of course Tesco has not been directly adversely affected by Covid 19 on it's business, but the share price may have been suppressed along with the market in general.
mpw
''I Bed & ISA’d my TSCO holding. I even topped up my holding on Friday afternoon using some uninvested cash that was sat in the ISA.''
Well done.
I also purchased Tesco on friday
Tig
''none of whom consolidated their shares''
A large return of capital coming off of the balance sheet as a result of an asset sale quite often would result in a consolidation, especially when that company has staff share schemes where option prices have been set.
I am a Vodafone shareholder. Vodafone made a large asset sale which was returned to the shareholders, and a consolidation also took place. Obviously a special dividend maybe coming about as an example a bank not needing provisions that had previously been set aside, and therefore becoming available to distribute on top of the normal dividend wouldn't result in a consolidation.
Tig
''they have left our share price open to considerable manipulation by market makers. ''
I really don't know why people come out with 'market manipulation'. It is mainly made by those who are not happy with an investment that they have made, in not giving them a return that they seem is justified.
The share price of any company is determined by supply and demand .
I don’t believe that a private investor (or their accountant) will find themself in the position where they are able to choose how the Special Dividend is handled for tax purposes. That’s why, a few months ago, I Bed & ISA’d my TSCO holding. I even topped up my holding on Friday afternoon using some uninvested cash that was sat in the ISA.
The proceeds from the Asian asset sale, and the choice as to what was going to happen with the capital, has been reflected in the market cap of Tesco for quite a while. Any shareholder could have taken their share of assets at any time by selling shares.
It is also not worth individuals wasting their time giving nonsense opinions about the shareholdesr being 'robbed', 'it's all a trick' etc etc, and of giving alterative uses for the £5 Billion.
The decision has been made and passed at a shareholders meeting.
About 51p per share will be returned to shareholders this month.
The shares will be consolidated tomorrow .
The shares are going XsD tomorrow .
Tig
''Time will tell but for me this is a terrible way to use such a monumental sum of cash.''
Everyone has known the there was going to be a capital return. Any shareholder was free to sell their shares at any time.
Tig
''I just don't trust this current board based on this special dividend coinciding with a consolidation''
It is a bit obvious it should be done at the same time as capital coming off of the balance sheet.
TB
''Once it settles and I get my returns back I am out ......''
If I was of the view not to keep Tesco shares for the longer term, then I would have sold up before now. Obviously you must have miscalculated the repercussions of the return/consolidation.
Tig
''This doesn't feel very special at all ''
It is only called a 'special' as it's outside the scope of a normal dividend income return.
Anyone reinvesting the capital return back into Tesco will have a greater share of the company than they did before (stating the obvious), or can be invested elsewhere.
For the majority if they feel the need, would be paying 7.5% of 51p to UK plc, if the threshold is breached, so not enough to worry about.
Tig
''FTSE 100 firms are dominated by institutions.
''
So the majority of shareholders were if favour of the return of capital rather than pay down debt.
I would rather have the capital also, as I would be hopeful that I could get a better percentage return on it ,than Tesco debt interest rate.
Tig
It would have been better to have created different classes of share with the money to give people a choice. You can have a 'income' dividend or a 'capital' dividend. I/ my accountant will be classing it as a return of capital as it has come about by the sale of assets.
What others do is a matter for them
There were some very big buys after hours on Friday 1million and 2 million. I think the money men would have worked out if it was worthy or not.
''If the board wished to reward us they could very well have said that they are plugging the gap in the pension and are using the remaining £5 billion to significantly reduce debt ''
It doesn't matter how many different views there are as to what should have been done with £5 Billion, the fact is that there are people who run the business who are paid to make that decision. Shareholders could have voted against that choice.