RE: Share consolidation5 Mar 2025 19:49
Old trader why dont you ask her the questions
Here are some questions to ask Helen and see how she responds.
1- I am a Capita shareholder concerned about the proposed 15-to-1 share consolidation. Many shareholders, including myself, purchased shares at prices significantly higher than the current market price. For example, an investor who bought at 60p would see their adjusted cost basis rise to £9.00 after the consolidation, while the market price might be around £2.25. This creates a large paper loss and requires a massive price increase just to break even. Could you please explain in detail why management believes this consolidation is in the best interest of long-term shareholders, given this substantial risk of immediate and significant paper losses? What specific, measurable benefits does management anticipate that outweigh these risks?
2- Given that institutional investors hold a significant percentage of Capita shares (reportedly over 30%), what specific consultations has management undertaken with these investors regarding the proposed consolidation? What was the feedback received, and how has that feedback been incorporated into the decision-making process? Can you share any documentation or summaries of these consultations?
3- How does the proposed share consolidation align with Capita's stated long-term strategy of becoming a 'Technology Efficiencies Delivery Company'? Does management believe that the potential negative impact on shareholder sentiment and the risk of increased future dilution (due to the reduced share count) could hinder the company's ability to attract investment and execute its long-term plans?