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Tich, if you hold 19 shares (or any multiple), there will be a period(8-22july) when you will own 19 shares which will be worth Approx 252 p and 10 Rights worth roughly (price on 7 July minus 252p). In that period, you can sell the rights and be in roughly the same place as you were on 7 july or you can exercise those rights and pay 10X 175p to buy 10 new shares .YOU MUST do one or the other, not to do so will cost you money.If you buy shares using your rights, you will end up after 22 july with 19 shares worth somewhere in the region of 252p(obvs any market moves allowed for) . If you sell the rights, you will collect £17.50 and still hold your original shares worth about the equivalent less.

Apply those numbers to your holdings and think about those options. The only wrong option is to do NOTHING. Also allow for whatever vagaries the market throws up in the meantime.

There is a copy of the prospectus for the rights issue here

https://www.marketscreener.com/quote/stock/CHESNARA-PLC-4004600/news/Chesnara-Prospectus-in-relation-to-a-rights-issue-50413019/

It is a lengthy and detailed document, so here are a few key extracts

10 for 19 Rights Issue of 79,539,337 New Ordinary Shares at 176 pence per New Ordinary Share

Sponsor, Global Coordinator, Joint Bookrunner and Underwriter

RBC EUROPE LIMITED

Joint Bookrunner and Underwriter

ABN AMRO BANK N.V.

Joint Bookrunner

PANMURE LIBERUM LIMITED

It is expected that the Rights (Nil and Fully Paid) will be admitted to trading on a multi-lateral trading facility of the London Stock Exchange ("Admission of the Rights (Nil and Fully Paid)"). It is expected that Admission of the New Ordinary Shares and Admission of the Rights (Nil and Fully Paid) (together "Admission") will become effective at 8.00 a.m. on 8 July 2025, that dealings in the Rights (Nil and Fully Paid) will commence as soon as possible after 8.00 am on that date, and that dealings in the New Ordinary Shares (fully paid) will commence on the London Stock Exchange at the time and date shown in the Expected Timetable of Principal Events set out in this document.

The latest time and date for acceptance and payment in full under the Rights Issue is 11.00 a.m. on 22 July 2025

The document is inordinately long (as they always are). However, for the average punter, you can safely ignore much of it.

To pick up on a point made by the analyser in reply to my last post, yes it is true that the RI will get done as that is the job of the underwriter BUT should a significant number of rights NOT be taken up that would be seen by the market as a red flag and the company's future plunged into doubt. That won't happen here, as before proceeding, CSN will have canvassed the major holders and gained their assurance of taking up their rights. I remain confident that the outcome will be a positive one for the company and shareholders, tho' as I hope is clear, even those who haven't got the necessary cash available to take up their rights, selling them in the open market from 8 July onwards will at least not cost you anything except perhaps greater profits in the future.

As a long-time investor, I have participated in a number of rights issues, hence I offer the following comment ( for information only, not advice ).

First, read the RNS setting out what is happening, it is here:

https://www.londonstockexchange.com/news-article/CSN/acquisition-rights-issue/17116867

For those unfamiliar with stock exchange terminology, here is a brief summary.

CSN intend to buy HSBC Life, a specialist insurer, for a sum of about £ 260 million. The cash will come from CSN's own cash reserves(£55Mill), borrowing £65 million at commercial rates From their revolving credit provider and you, the shareholders' money . Us shareholders will contribute(£140 mill) ie the largest portion , without which the deal cannot go ahead.

In order to ensure that most of us stump up , we are being offered quite good terms to buy more shares and a slightly larger portion of the enlarged company.

Rights issues are always designed to succeed , failure would be near-terminal for the company, so ALL shareholders should get involved. You have two choices , FIRST you can find enough cash to buy the offered shares, 10 new ones for every 19 held at 176p, you will hold approx 52% more shares, though the THEORETICAL SP will become ~250p. If you don't want to add more cash you will have the chance to "sell your rights" , as for a while, they will trade as a separate item on the stock exchange, that way you will get some cash back , BUT your holding in CSN will be worth less.

That is the factual stuff, now for the theoretical stuff.CSN clearly thinks that the purchase is a good deal for the company and its shareholders and they EXPECT almost all to take up their rights , if we didn't the deal would fail and they would look foolish. I agree and will take up my rights, I expect ( no guarantees )that the enlarged company will be worth more , ie more than the sum of the existing company and the business they are buying. Rights issues do sometimes fail , but not often and be aware that,in the background CSN will have an investment bank backing the issue , that IB will NOT expect to lose money and will have ensured that CSN's RI is priced to succeed . I will post again as details emerge , but fire away with any questions......

Aberforth are holding on their own account, they run investement trusts which specialise in small companies and distressed situations.In their recent investor presentation they cited the "new listing rules" introduced last year which lift a number of onerous and time consuming constraints on smaller companies as a factor , ie MCG and others manangement cost should fall.Their position is worth just less than £10 mill so only one percent of their total assets.

I have said on a number of boards and a number of times that I have given up trying to explain some of the vagaries of shorting, as almost no one seems to understand. I offer yet another attempt to explain some of the principles.

First, a " naked short", ie a short position with no other position in a stock, can (improbably but possibly ) lead to an infinite loss. (Think about why)

Second, for that reason, ALMOST NOBODY takes out a naked short.

What often happens is that a major investor( see BlackRock as a prime example)may hold a substantial long position in a stock which has some risk, so , as insurance against a fall, they take out a compensatory short position. If the stock rises, the short loses money, but assuming they've done their sums correctly, that loss is less than the profit made on the SP rise.

Another strategy is to run a short/long pair, choose two businesses in the same industry and short the one you think is least promising , while running a long position in the other. If the industry receives a boost and again you've calculated correctly, the losing short is balanced by a more profitable long, if the industry suffers, then in reverse, the short , ameliorates the loss on the long. The same is true if there is a major market move IN EITHER DIR£CTION.....

There are variations on these themes involving options,swaps, convertible debt.....

There are many more possibilities, but maybe you get the drift.

Thank you, smokeytime, your answer tells me all I wish to know........I trust others here also get the picture.....

Genuine question smokeytime, do you know or believe you know what you are talking about? If you answer yes, can you offer some concrete evidence, not merely idle chat, to demonstrate that you understand the markets and/or why shorter exist and what they do? I am quite prepared for a logical and reasoned answer, and if you supply one, I will treat your posts with respect.....

Anyone really interested in MCG's debt can look at the last annual report,link available on their website. BUT for those who can't be bothered(and if so, why are you invested here?), let me put that £ 1 billion figure in some context.MBC's TOTAL liabilities are actually £3 billion, but then total assets are£3.2 billion. For those who don't bother with company accounts, that's not untypical. Companies have to buy the means to carry out their business and, where they can, arrange payment over a period of time to smooth out the " lumpiness" of cash outflow. The figure of £ 1 billion appears to have been drawn from note 24 to the 2024 accounts, and while it is correct, it is NOT the problem it might appear, it represents liabilities for equipment purchased but not yet paid for, other trade liabilities etc. So long as the company is a going concern, debts can be rolled over. AS you may guess, I am

invested here, and have confidence that the SP will recover to a value much higher than today's.

See this AM's RNS

https://www.londonstockexchange.com/news-article/AAL/anglo-american-completes-demerger-of-valterra/17063406

holders should now, or very soon see their AAl shares at the same values before until normal market activity begins , because of the restructuring described here

"As at 6pm on Friday, 30 May 2025, the issued share capital of the Company was 1,337,577,913 ordinary shares of US$0.54945 each. However, following the share consolidation which took effect at 00:01 (UK time) on Sunday, 1 June 2025, the issued share capital of the Company is now 1,178,050,272 ordinary shares of US$0.6239(1) each. No shares are held in Treasury, therefore the total number of voting rights in the Company is 1,178,050,272.(2)"

Reducing the number of shares means you hold a slightly larger portion of a slightly smaller company as well as a portion of a new company called Valterra Platinum..hope that is clear.

For my part, I did as I suggested, sell a few weeks ago and, once the dust has settled and I suspect, a gentle drift down in the AAL sp , all else equal, I will buy back in the expectation that the "tidy up" (the proposed BHP playbook) will continue, AAL is dressing itself up for a wedding with BHP , which is still very likely to happen.

Remember YOUR dividend yield is based on YOUR average buying price, so regardless of the SP rise, you retain a yield equivalent to the cash dividend as a percentage of YOUR average, NOT the yield quoted on the financial pages. My dividend yield here is now comfortably over 10%. Those of you invested before today will be in a similar position.

Https://www.londonstockexchange.com/news-article/MNG/dai-ichi-life-and-m-g-form-strategic-partnership/17061088

One of my most boring (though profitable ) holdings just got interesting. Dai ichi life, Japan's second biggest insurer with assets of £350 billion(ie slightly bigger than MNG).....has just agreed a tie up and investment worth 15% of MNG.Dai Ichi has undertaken to BUY in the market , its 15% holding , which cannot help but drive up the MNG SP significantly. The DI acquisition programme will soak up ~350 million shares over its duration(average daily volume ~10 million).

As ever the short-term impact on the SP is hard to predict , but in the medium term it must be worth an SP bump of 20p, or so.

Surprisingly large bounce on a positive, but not earth-shattering RNS. GRG are doing much of the same, growing steadily, selling at affordable prices and despite the food fetishists, selling wholesome, filling, if somewhat unhealthy food. As suggested below, their marketplace still has room to grow everywhere except those places where people are too posh to be seen in a Greggs. I still see a few years' worth of expansion, and despite the government loading costs on employers, GRG seems better placed than most to eke out small positive margins on an increasing volume of sales.

The ride from here may be bumpy, and typically, the market takes back some of the rise when it is as sharp as this morning's, but I hold and expect to see somewhat erratic but positive SP growth.

Todays untypically sharp upwards move might suggest either optimism from analysts or maybe, hints of positive trading news?

When there is no obvious explanation for a sharp SP fall, the "experts" usually use the expression "overbought". Translation: "We don't understand this, so we just assume that some recent buyers are taking profits". In this case, it may be true, as I suggested a few days ago, I have sold tranches at 1757 and 1746, but no need to worry, I will be buying again, maybe today, but certainly if it falls towards 1500.

See

https://www.londonstockexchange.com/news-article/MNDI/q1-2025-trading-update/17025520

I hold here, having previously been a holder in SMDS and cashing out at the takeover. I believe that paper and packaging is still a growth industry, and MNDI are now my investment in it.

Today's news is broadly positive, with IMV quite a lot more to go in the next year or two , a strong hold.

See

https://www.londonstockexchange.com/news-article/BA./agm-trading-statement/17022793

extremely positive as might be expected, projecting sales,EPS, EBIT and EPS all up by nearly 10%. No significant fresh news, so most of it is in the price, but I wouldn't be surprised to see a tick up this morning. My only wonder is whether the SP is nearing a short/medium-term high. I might ( as usual) take some profits , only to see the SP continue to climb!

This morning at 2100p , heard about the Peabody doubts WRT to the coal purchase over the weekend and my limit sell at £21 was hit. I suspect the anxiety over the Peabody deal will blow over , but maybe the SP here will drift down for a while....

See this from my broker regarding the details of the AAP demerger

ANGLO AMERICAN ORD USD0.54945

Event Type Demerger

Description Demerger and Name Change

Terms: 110 new AAP DIs for every 1,075 existing Anglo American shares held

Effective date: 31st May 2025

Pay date: 2nd June 2025

Anglo American plc has announced a Demerger, which is expected to become effective on 31st May 2025.

Under the terms of the event, holders will be issued with 110 Depositary Interests (DIs) in Anglo American Platinum Ltd (AAP) for every 1,075 existing Anglo American shares held. Anglo American Platinum Ltd intends to proceed with the admission of its shares to trading on the London Stock Exchange.

Subject to approval by shareholders of Anglo American Platinum Ltd at the AGM on 8th May 2025, AAP will be renamed Valterra Platinum Limited.

The company has issued a notice which provides information regarding the tax implications of the demerger, which is being structured as a dividend in-specie and considered " AS INCOME "for UK tax purposes, meaning that, depending on a shareholder’s individual circumstances, income tax may be payable as a result of the demerger. The full notice can be found by following the link below:

https://www.angloamerican.com/~/media/Files/A/Anglo-American-Group-v9/PLC/about-us/governance/aa-notice-to-shareholders-tax-considerations.pdf

Immediately following the demerger, the company are also proposing to conduct a consolidation of Anglo American plc shares. More information on the consolidation will be provided in a separate corporate action notice. Full details of the demerger, name change and the consolidation can be found in the company’s event circular, here:

https://data.fca.org.uk/artefacts/NSM/Portal/NI-000117254/NI-000117254.pdf

The new shares are expected to be released by the company on 2nd June 2025 and will be issued to accounts upon receipt.

I have capitalised "AS INCOME ", relevant to any who hold outside an ISA, and NOTE you are getting DEPOSITORY INTEREST certificates, broadly, but not entirely, equivalent to a UK share (read the significance as part of your decision making).

As stated, I will sell before and probably buy after ......

If you don't want the hassle of changing platforms, then a slightly messy solution would be to sell Anglo shares before the split and buy them back after. There is a small risk that AAL shares rocket in the interim, and there will, of course, be trading fees.

I am with II and have received no notification of any issues with holding AAP shares, BUT I am highly likely to sell and take the modest profit I am sitting on before the split.

For details of the timetable, see

https://www.londonstockexchange.com/news-article/AAL/publication-of-circular-for-demerger-of-aap/16980620

The key date seems to be Friday 30th MAY , but to avoid any risk, I would suggest taking action a little earlier that week.

Longer term, I may well buy back into AAL as I, and almost everyone else, think that they are still a target for an offer, largely because of their valuable copper assets.

It's been clear (to me at least) for some time that the markets are broken. Leave aside the ridiculous oscillations re "Trump tariffs", just note that this stock, with a decent, though IMV, unspectacular trading announcement, has risen 20% in three trading days. As a holder, I'm not complaining, but it reinforces my view that automated trading is causing SP moves many percentage points higher than the news warrants. The good news is that PI's can take advantage of this by sensibly top slicing or buying at unwarranted lows.

My annual aim is to hit inflation +10%, and for this year I'm already there, and that is despite a migration to lower risk holdings in prefs, high divi earners and generally boring stocks.

Will the Jet2 SP fall back? I suspect so, but given the growth in their target market, the expansion of their offer to new airports and destinations, their shrewd management and the fact that for almost all, a summer holiday is seen as an essential, not a desirable, I expect to see an upward trajectory, that the SP oscillates wildly merely makes shrewd timing of entries and exits a little easier.......

GLA