Member Info for Jambo813

All this chat re div tax reminds me of days in MMs who if had to maintain records of all real dividends received on long positions and dividends ( manufactured) they paid out on their short positions. If net short they would pay HMRC if net long they could offset the dividend tax against any Corporation tax due on trading profit.
So at near end of tax year MM1 may be long on divs but no trading profit.
MM2 is net short on divs.
They do deals where MM2 buys stocks just before ex date from MM1 and agree to sell back on ex date . The price is agreed in advance and difference is about half of the tax rate applied to the dividend.
Purpose is for MM2 to reduce or clear the tax on their net short tax position and reduces Corporation tax liability on trading. MM1 also makes a trading profit on the trades

One of my accounts is an income drawdown account on which any withdrawal of cash would be taxed at standard rates. So any cash dividend received would I guess not be taxed on receipt as would be double taxed if withdrawn.
If it was re invested and I lost the lot then HMRC would get nowt. The only silver lining on that particular cloud

Goodness me I have tonight agreed with a post from Merc.

Whatever is going to happen we shall know soon. If I know anything from the RNS it is they have a proposal so they can do 2 things, accept with perhaps a few tweaks the buyer agrees to or the can screw it up , which they would have to explain.
They already have put pen to paper and said the offer is good, hence significant dividend so do not expect there is any hurdles from here in, unless EUA come up with them.
Even if the buyer is now in a stronger position given they know there is no competition left.
Then again it could be like a house buyer saying I make this offer if you take the house off the market.

I would not expect an update any time that soon the RNS said they are going to focus on the proposal. That reads they still need even more time.

@Mark and all
Just to be clear re holding at close of ex date to qualify for the dividend.
To qualify for any dividend you must need to have purchase before the close of business on the day BEFORE an ex date.
Does not matter if your trade has not settled until on or after ex date as that is the cut off for trading purposes.
The record date is the one the share registrar uses to pay out the dividends but the Crest settlement system will automatically debit sellers and credit buyers on trades made before ex that do not settle until after ex and record date.

Dividend declared and price goes to at least the dividend rate per share plus whatever they price the residual value of EUA. You can then trade buy with or sell with dividend to ex div date.
On ex div date all things being equal then price falls by the div value as trades are made without div.
Special divs are different as when announced they can be announced out of market hours and would say for example the ex date is in effect was close of business that day if announced after close or pre opening next day

Cannot be to far away from the non binding offers as they had said some were for part assets only as well.
Problem I have with the RNS is they do not say it is a binding offer yet they seem to know what the offer number is. Not as if this proposal landed on Tuesday and since they have taken the decision ( or was it them) to elbow any other interested party, you should only be doing that if you are in a position to accept a binding offer.
The more I think about this it was a terrible RNS.

Are they still in the process of advising EUA or not ?
If not then why not if EUA still need time to focus on the proposal.. asset purchase,,,bid or whatever it is supposed to be.
After all this time to come up with an update that indicates an offer ( which appears to be no different to the non binding offers already made by others months ago) and they are going to focus ( need more time) on this.End.
What do they need to focus on exactly and how long do they need to focus.
Do they still have the advisory firms on board to assist in their focus.

Credible to me means whoever it is , it is not NN or the much mentioned Japanese consortium as if it was the description could have been much more bullish by including the word large. Credible gives the impression if they were named no one would have a clue who about them.
I sincerely hope I am wrong about this but if a purchase of assets does go ahead and it falls way below expectations here, then there is a possible route to EUA going private IMO

Stork
You are asking the right questions.
The general consensus is EUA are selling everything except the potential 104m Oz which EUA will develop.
Fine, but then what is it worth that is being sold. Perhaps to pay a substantial dividend.
Substantial ? Well a 15p dividend on a share price in high 20s is substantial and that leaves EUA to develop the big piece left.
If that news came out when the share price was as it is now how many on here would be pressing the sell button.

FCA only approve the use of the RNS service to provide the information.

Could also be no bids but one slim proposal was received and which could pay a substantial dividend in the context of a fair percentage of today’s SP. all subject IF the deal goes through.
Imagine if that was the info we got tonight there would be one hell of a disorderly market in EUA tomorrow.
The RNS IMO was vague enough for FCA to be asking questions pre opening tomorrow.

Must be on the cards as how can the market seriously set prices on EUA ?
The MMs above all are averse to risk. Bleat all you want about manipulation but they find sellers and buyers at current SP range.
They are now expected to price in what exactly. ?
A deal that may or may not happen and not much else.
Oh yes , a dividend which could be higher or lower than today’s close and the remainder of EUA valued at what exactly.
Suspension must be on the cards

Not necessarily.
If they borrowed stock and did not return it to the lender by dividend record date then yes the lender would claim the dividend From the borrower.
any dividend announced will immediately be reflected in SP so either way the shorter is open to closing out at a higher price before ex dividend date or paying over cash equivalent of the div.

It is a “proposal “ - (so not an actual bid then?)
But could pay a substantial dividend - (so numbers have been discussed then ? but not a bid ?)
You are going to focus on this proposal and there is no guarantee a deal will be done - ( focus as in deciding Yes or No ? and if currently undecided why elbow all the other interested parties ? )
Does not thrill me one bit but will hold for now.

Jeez , I got it in the neck when I ventured GH was selling and from some of you who are now speculating why he is, now that it is official.
No way is he shorting or any other Bullyesque trade type ( which frankly do not make sense ).
Why and how much he is selling is his own business and should not be seen as a red flag.

THanks Spades

Spades, I did not actually use the word “most” in the context of LTHs.
Pretty sure a few may have offloaded a few and was just saying that was only part of the explanation for the sales over the last month or so.
As regards the Bloomberg terminal, does that really show the individual names and holding of us private investors.
We or the large majority hold shares via Nominee Company names which are reconciled daily with the Share Registrar company, who themselves do not know who the actual shareholders are who make up the Nominee balance.
So how does Bloomberg get hold of these details ?
Only explanation I can think of is some get the Nominee name mistaken for a LTH. Same as some supposed reputable on line Share news stories have commented on GGP being 85% owned by Institutions as have mistaken the likes of HSBC Nominees being shares owned by them when they are not.

I think the SP at the moment is due to what most have said above including LTH s & GH reducing their holdings and good luck to them. The general sentiment has generally been neutral at best over the last few months and that IMO is due to 2 camps.
The first being recent buyers who bought in the high 20s and 30s on expectation of big and we quick profits in much
ranges.
The second camp is LTH s who if honest ( we are in AIM so are traders at heart) will have rued the chance to trade out in the high 30s and missed the chance to get back in and almost double whatever was sold, or just bank a nice profit.
Whatever though, we are an exploration company with a Tier one in the bag and more excitement just round the corner.
Luvly Jubbly as Del Boy would say.