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The ex rights date was crystal clear , the 24th of May at 08:00.

it's in the words.......ex rights

excluding rights

Therefore they will be trading on the 24th excluding the rights.

Which strangely means that they were trading with the rights on the 23rd.

Now, the confusion was largely caused by those not understanding the process posting on here confusing many. No doubt fuelled by the 10% drop in the price, this lead to an assumption that the rights had elapsed.

But, they had not figured that the market does not like rights issues, least of all heavily discounted ones.

Record dates are moot, ex dates matter, now you know.

Enough information to make a decision was published @ 07:00 well before trading started.

https://www.investegate.co.uk/announcement/rns/national-grid--ng./7-for-24-fully-underwritten-7bn-rights-issue/8215977

The 'full prospectus' was published later, you then had the rest of the day to make a decision.

Https://docs.google.com/spreadsheets/d/e/2PACX-1vSzpntXIbDbv3WIJxMzgrF484U08WUxqoWPJuzrHhTKoVPC-2NGC_bsiH4p5RVM3E8LnsOtS6NazImN/pubchart?oid=1398899881&format=interactive

FYI, just click on username then you can see only his, hers, them, its posts.

"As a first step for change, Labour will set up Great British Energy, a publicly-owned clean power company, to cut bills for good and boost energy security, paid for by a windfall tax on oil and gas giants."

source:

https://labour.org.uk/missions/clean-energy/

No, they have not, the ex-rights date was always the 24th, as I stated ad infinitum yesterday.

Windfall tax on energy producers.

i.e. Shell, BP, etc.

I short they are going to invest your cash in green energy - windmills, solar, etc.

no mention of taking over the large plcs that provide most energy to the grid, or the grid itself.

Oops, after my reply I spotted your HUGE math error....

those nil paids are trading at circa 225p.

Correct, but they will not get the next dividend of 39p, AFAIK.

I'd be sure to account for that in the 'arbitrage' gap.

FYI that next div is 39p.......

that may fill the gap.

Note.....

Those nil paids will not get the next dividend, this may account for some of that 'value'.

Those trading at circa 900p will.

Mmm....

That would seem to suggest that there is selling pressure on the nil paids.

Perhaps some (many) are not keen on taking up rights.

Mind you, early days yet.

Indeed it is, and given a strong share price NG. were right to do it.

It is one of the reasons companies care about the share price, if it drops like a brick and you need cash, a rights issue becomes impossible.

Put it this way, BT needs cash for infrastructure, its share price is weak. A rights issue would create havoc at the current price, hence they are borrowing and paying for it.

You will have to wait for the result of the rights issue, between now and then they could be volatile.

What you are looking for is a high percentage of take up, and it is likely to be high given the discount.

Which will not leave shares in the hands of the underwriters shares that sooner or later will be dumped on the market (they can't do this for a period of time, normally noted in the prospectus).

645p was the price of the rights issue shares, only those holding yesterday evening will get those at that price.

The current price is circa £9, this accounts for those shares and the original shares. It is an estimate and may fluctuate depending on the take up of the issue and the markets in general.

Those nil paid rights will trade separately, and will pretty much trade at circa 645p less that the normal fully paid shares. Reflecting the fact that the 645p has yet to be paid on them.

What does it all mean......I'll try to explain.

A rights issue raises cash from shareholders to fund either investment in the business or fund a takeover/purchase. In this case it is investment in the business. I can work out much cheaper than a loan.

A rights issue is backed by the banks, and the banks charge hefty fees, the fees are mainly to cover them if the rights issue does not get taken up by the shareholders. This is also why the new shares are sold at a discount, to encourage take up.

If you held the shares yesterday you will now receive nil paid rights, in short new shares that you have not yet paid for(in full), these rights can be sold, or you can take them up by paying for them.

If I recall 7 new shares for every 24 shares you held.

So, you will now own your original shares (now worth less), but can buy 'cheap' shares with those rights.

Today they are ex-rights, hence the drop in price. anyone buying today will not get the rights to buy those cheap shares.

Rights issues have impacts, and benefits.

More shares, less earnings per share, also dividend is spread over more shares, hence it will drop, or they will have to allocate more funds for the dividends. They did not mention doing this, they mentioned rebasing dividends (read that as lower yield).

You will have less of a stake in the business if you do not take up the rights.

If enough do not take up the rights then this can hit the share price, as the banks have to buy those that are not purchased, but the company is guaranteed to get the cash (issue was fully underwritten). They of course later sell them, creating downward pressure on the price.

We will know how this has gone when they report the details, dates in the prospectus.

If all goes well the company has new funds, they can invest it, this should bring growth in income, and the may recover value.

If I recall correctly the last rights issue went well, it was fully taken up and the price soon recovered.

any questions and I'll try to explain further...

"simple fact is Drahi bought millions stake in BT. "

...and another fact is, he has already lost hundreds of millions on his investment.

"It may end up with BT paying paltry amount like the case on the other day."

.....if they lose, the figure is likely to start from £600m.

This is not a Ofcom fine, or a slap wrist, this is a class action lawsuit of well over 1million customers.

I think it was yesterday, and it was another case against BT.....

https://www.catribunal.org.uk/cases/16257723-mr-justin-gutmann

Wrong, they will drop today, yesterday's drop was generally because the markets do not like rights issues.

Today they will drop again, and IMHO by more than yesterday.

Big Bad Baz

"Lotus 44, Having re read the rns, I believe today's sp includes the ex rights issue price. the nil paid price can be traded tomorrow but trading in the new shares starts on june 6th. So tomorrow should not start at 920p"

They only go ex-rights this morning, and they will almost certainly drop when the rights expire, my best guess at least 10% more down today.