Member Info for MikeM14

This morning's RNS seems to me, on the face of it, to be good news. You were right, Krusty, about this being oversubscribed. Demand has "significantly exceeded" the max size of £396m. An extra £54m has also been raised by a "Tap Issue", making gross £450m total. However, they do say that there has been some scaling-back of excess applications. With the new total number of shares this would be a £3bn company in terms of market cap!
All the above, though, is of course still conditional on the votes at tomorrow's General Meeting.
ATB, Mike.

y11-shx,
You shouldn't have long to wait to find out. Conditional results are due to be announced this Thursday (25 Nov), and results of the General Meeting announced on Friday (26 Nov).
In normal circumstances I'd have thought it likely that you'll be "scaled back", ie you might get some extra shares over your basic entitlement, but not the full 6x.
I haven't unfortunately had the time to read the Prospectus in its entirety, but if anyone is as concerned as I was at the statement at the bottom of printed page 15, and paragraph 9 on printed page 160, about the risk of a "liquidity shortfall" of some £143 million, they will probably agree that on this occasion the success of the fund-raise is particularly crucial.
I applied for my full entitlement plus a small excess, but nothing like as big as yours!
Mike.

Lti,
Okay, thanks for your 2 responses.
Mike.

Lti,
You say, if LLOY were to buy back some of its shares, "NAV remains the same. NAV per share goes up. ".
NAV, as I understand it, is gross assets minus gross liabilities.
If LLOY were to, say, spend £5bn cash buying-back its own shares, surely assets would go down by £5bn as that cash, which was an asset on the balance sheet, would leave the company. Liabilities would not change. Therefore net assets would be decreased by £5bn. Equity (shareholders' funds) would also decrease by £5bn - there would be less shares in issue.
NAV per share would be the new (reduced) net amount of assets divided by the new (reduced) number of shares.
As liabilities would then be relatively larger compared to net assets and equity, the gearing would be higher, earnings per share would be increased, volatility of profitability and thence share price would be increased, and the affordable amount of dividend would be divided by a lower number of shares, hence dividend per share *could* be higher.
Am I missing something here?
Mike.

Hi Lanski,
My strategy's generally the same as yours - as well as saving on dealing commission, I think there's a saving on Stamp Duty (tax). Whilst it's only 0.5%, "every little helps"!
For me the main problem with this strategy is I tend to be fully invested most of the time so find myself sometimes "caught out" short of cash when these fundraises are announced out of the blue - which is more of a problem when one has holdings in several of these types of Investment Trusts. I guess the answer (for me anyway) is to be more proactive in anticipating when these fundraises are going to be announced, by reading back through the old announcements of these "share issuance programmes" (some of which last for 1 year).
ATB,
Mike.

Hi Thommo566,
I hope you'll forgive me butting in, but I think 2 things are getting confused here.
From my reading of the first announcement (2 Nov), the "allocation" (ie the one share for 13 held) applies to the "Open Offer", which is for individual shareholders who already hold some UKW shares ("qualifying shareholders").
The "£1,000 minimum" applies to the "Offer for Subscription" which is a different thing. The "Offer for Subscription" is for individual members of the public who do *not* already own UKW shares, to apply to buy some of the discounted shares.
The "Placing" is a different thing again. That's for Institutional Investors, such as large pension funds, and is not relevant to individual members of the public.
If you think I've got this wrong, I'll be interested to hear.
Rgds,
Mike.

Paul2566,
The dates, and the price, were set out in UKW's RNS announcement of 2 November. The RNS announcement of 5 November then confirmed that the Prospectus was available, from UKW's website. That is the definitive document, with all the details.
The deadline for you, me, or any other private investor to react by will depend on their individual broker/platform. Due to whatever their internal processes are, all the different brokers won't necessarily have the same deadline. Mine is "by" 18 November.
I haven't yet read the Prospectus - it's 189 pages long...
The new shares, according to the timetable, are admitted and start trading on 29 November, but whether you actually get yours then again depends on how quickly your own broker processes things and credits them to your account.
From what I can see so far, the dates as far as UKW is concerned haven't changed since those in the timetable set out in the original (2 Nov) RNS announcement.
Regards,
Mike.

MadMan111 and Lanski (and anyone else that's interested!),
The RNS announcement describes the overall "Issue" having about 4 parts: "Placing", "Open Offer", "Intermediaries Offer", and "Offer for Subscription". I've only read the "Open Offer" part in any detail, because as an existing PI (Private Investor) I guessed it was the only one applicable to me. This seems to be a standard way that these renewables Investment Trusts do their fund-raises, not just "UKW". Within the last few months I also saw, and took part in, similar fund-raises by "ORIT" and "SEIT", and they were structured in a very similar way. (Lanski, I saw you on the "ORIT" board during their last one, in July this year). I believe, although I haven't been there long enough to take part in any of theirs, that "TRIG" also typically do them in a similar way.
Maybe some of these parts take precedence over other parts to give existing shareholders "first refusal". They also have an "excess application facility" if you want to apply for more than your basic entitlement, although I've never tried that (sometimes it doesn't pay to be *too* greedy, "eggs in one basket", etc!).
One thing seems to be for sure - I don't think these are shares for short-term traders. They are all about a (hopefully) growing dividend over the long term, and with (again hopefully) capital at least preserved.
Good luck all,
Mike.

Harty1986,
Whilst this is in some ways similar to a Rights Issue, it's (as far as private investors are concerned) an Open Offer. They are different. In particular, with a Rights Issue you can sell/trade the "rights" to the new, discounted shares if you don't want to subscribe for the new shares. With an Open Offer you can't. If you don't subscribe for any of the new shares, your "entitlement" will expire, worthless.
Why the share price in the market drops on the announcement is because once the new shares are issued, there will be some who want to sell them (having got them "cheaply"), so the market will get "flooded" with cheaper shares for a while.
I hope that helps.
Rgds,
Mike.

There have been a number of mentions of "rights issue" in recent chat on this UKW board.
Whilst they're in some ways similar, this is not a Rights Issue but, as far as private investors (PIs) are concerned, an Open Offer. They are different.
Rgds,
Mike.

MadMan111,
Ex-Div date is actually 11 Nov, not 4 Nov. But you're right that the new shares under this Issue won't qualify for this particular dividend, only the ones starting from the period ending Dec 2021.
Rgds,
Mike.

Hi Wil57Woo,
I don't post here often, but like to help when I can.
In my experience the share price falls instantly at the start of ex-div date. Ex-div is normally on a Thursday. Some say that the Payment Date is more important, but that's not my experience.
To give an example, company "X" declares its next dividend at its results announcement on 27 Sep 2021. It might give the following information:-
Dividend Amount: 5p.
Ex-Dividend Date: 14 Oct 2021.
Record Date: 15 Oct 2021.
Payment Date: 5 Nov 2021.
If the share price after announcing its results is 100p, then everything else being equal (which of course it never is with the stock market!) I would expect that as at market opening on 14 Oct 2021 the share price would fall by 5p, to 95p.
It might then go up slightly on or after 5 Nov 2021, because some people, when they get their dividend payment, will want to re-invest it by buying more shares of company "X". However, this rise would be spread over a period of time, because different brokers/platforms take different amounts of time to pay the dividend, and also different amounts of time to reinvest the dividend by buying more shares for the investors.
I hope that helps.
Mike.

Hi again BrightSideWalker,
Thanks for your thanks, and I'm glad what's in our answers is of some help.
In my haste, I omitted to mention what's probably one of the most "key" announcements. It's the one on 22 July at 07:00, "Publication of Scheme Document".
It's a bit of a long read (aren't they all?!?), but right near the beginning it's got stuff such as setting out the timetable for the whole process, with meeting dates, payment dates, etc.
To save scrolling through all the pages of announcements, hopefully this will take you straight to it:-
https://www.lse.co.uk/rns/MRW/publication-of-scheme-document-4ltun7jfry0jdmr.html
Once again, all the best with whatever you decide.
Mike.

Hi BrightSideWalker,
Like you, I held Morrison shares for several years as an investment, and enjoyed receiving the dividends.
All the terms of the Fortress offer are in the "Scheme Document", and are included in an "RNS" (Regulatory News Service) announcement. To see the announcement, if you press the "RNS" button at the top of this page, you'll see all the relevant announcements, and the key one is one at 07:00 on 5 July titled "Recommended Offer for Wm Morrison Supermarkets PLC". To save you scrolling through them all, this should take you directly to it:-
https://www.lse.co.uk/rns/MRW/recommended-offer-for-wm-morrison-supermarkets-plc-n8ggsf8f4z5x888.html
To put it in simple context, this is a "friendly" not a "hostile" offer, which means that the BoD (Board of Directors) of Morrison have recommended that Morrison shareholders accept it. That said, it still needs shareholders to vote on it, and pass it by a certain percentage (I believe it's 75%). There is a Court hearing and a General Meeting of Morrison, which I think are due to take place on 16 August, which is where this vote is taken.
Also, because this is a "cash" offer, if this bid goes through you *will* be liquidated whether you like it or not, and you will be left with no shares, but £2-52 cash for each share, plus 2p dividend, as cash, for each share. You shouldn't have to pay any broker/platform fee.
However, there are now so many possibilities of what could happen. I'll try to list them in a logical order:-
(i) No other bids emerge, this Fortress bid gets voted-through by shareholders, then in due course you'll get your cash.
(ii) This Fortress bid fails to get voted-through by shareholders, then:-
(iii) Fortress come back with a higher bid, which *does* get voted-through by shareholders, then in due course you'll get your higher amount of cash, or
(iv) Fortress don't come back with a higher bid (effectively they walk away), then with no other bids, the share price is likely to fall significantly, or
(v) Fortress don't come back with a higher bid, and another bid from someone else comes along. This new bid would likely have to be significantly higher than the current "£2-54" bid or else shareholders wouldn't vote for it.
There are other combinations as well, that could happen, such as a higher bid from someone else comes *before* the present Fortress bid has to be voted on.
Whatever you do, I'm afraid it's a bit of a gamble.
There will be those that say that the present share price, above £2-70, is because there are those in the market that *know* that a higher bid is going to come along. There will also be those that opt for the certainty of selling now and getting a price considerably above the present "recommended" offer of £2-54.
Good luck with whatever you decide.
Mike.

mattwsh2904,
It's all (the 2p dividend) in the Scheme Document, which you can find by pressing the "RNS" button near the top of this "LSE" page and looking for the RNS announcement at 07:00 on 22 July "Publication of Scheme Document".
https://www.lse.co.uk/rns/MRW/
I hope that helps.
Mike.

Thanks NotBot.
Sorry I couldn't help directly going back to the Safeway days.
Morrison's own table of dividend history goes back a bit further than my own list, but only to FY2006/2007.
If anyone needs to see it, to save searching it should be here:-
https://www.morrisons-corporate.com/investor-centre/shareholder-information/dividend-history/
I'll continue watching the MRW situation with interest but probably from the sidelines. Unfortunately it could go on for several more weeks before the direction of travel becomes clear.
All the best,
Mike.

CORRECTION:-
The first line in my list in my previous post should read:-
20 Jun 2012 - Final - 7.53p;
Mike.

Hi NotBot,
I've researched dividends further in relation to my own holding. Your figures are, as you suggested, just the Ordinary dividends and don't include any "Specials".
During the time of my own shareholding (bought in 3 tranches, on different dates), what I actually received was as follows in terms of amount per share:-
20 Jun 2021 - Final - 7.53p;
5 Nov 2012 - Half-Year - 3.49p;
19 Jun 2013 - Final - 8.31p;
11 Nov 2013 - Half-Year - 3.84p;
11 Jun 2014 - Final - 9.16p;
10 Nov 2014 - Half-Year - 4.03p;
10 Jun 2015 - Final - 9.62p;
9 Nov 2015 - Half-Year - 1.50p;
15 Jun 2016 - Final - 3.50p;
7 Nov 2016 - Half-Year - 1.58p;
29 Jun 2017 - Final - 3.85p;
6 Nov 2017 - Half-Year - 1.66p;
28 Jun 2018 - Final incl 4p Special - 8.43p;
5 Nov 2018 - Half-Year incl 2p Special - 3.85p;
1 Jul 2019 - Final incl 4p Special - 8.75p;
1 Nov 2019 - Half-Year incl 2p Special - 3.93p;
29 Jun 2020 - Final - 4.84p;
30 Oct 2020 - Half-Year - 2.04p;
25 Jan 2021 - Special - 4.00p;
28 Jun 2021 - Final - 5.11p.
To save space I haven't broken-out the Specials into separate lines where they were paid on the same date as an Interim or a Final, but this information is all given clearly also on the Morrison website under "Dividend History". In my case, the total dividends during my first tranche holding work out to 99.02p. Looked at another way, that reduces my average purchase price per share from just over 272p to just over 187p per share (bearing in mind later tranches were held for less time). Of course everyone's situation will be different depending on when they bought, in how many tranches, etc etc.
Everything here ignores the "Tax Credits" regime that was in place before April 2016, and is gross of any income/dividend tax where, again, everyone's individual situation is likely to be different.
I hope this is of some help to some on here - it was certainly an eye-opener to me!
It made me feel less bad about selling at what was, in CGT terms, a slight loss yesterday (just over 264p as against an average acquisition cost per share of just over 272p).
Good luck all with whatever you decide to do (whether or not I decide to re-enter at a lower price!).
Mike.

Hi mattwsh2904,
I don't think there's any special dividend. I don't recall one being announced before these bids started. The Fortress offer could be said to include a "special" dividend in that the 2p dividend forming part of the offer price would probably lie outside the normal dividend cycle (depending on timing).
The 12p "premium" in the share price, above the total value of the Fortress offer, seems now to be starting to be eroded away slowly. I took on board everything in the recent comments on this board, as well as other things, and decided to sell this morning at just over 164p - still about 10p above the total offer (incl dividend). It has since fallen slightly further.
Rgds, Mike.

Hi NotBot,
Thanks for summarizing the dividends received - for my part I had certainly forgotten how big some of the earlier ones were!
However, CGT rules don't take account of dividends (which are potentially taxed as income) so for most they will still be crystallizing a capital loss.
ATB, Mike.