Biffa Share Discussion Threads

[46pete] 24/10/2006 12:03

Lets hope we dont turn money into waste Geoffrey.LOL

[geoffrey] 24/10/2006 10:54

46pete - Interim results are scheduled for 6 December when shareholders will have a better basis for predicting share price movements. I remain a patient and confident holder until then!

[46pete] 24/10/2006 09:49

Has this share peaked yet?
Anyone.

[jeffian] 24/10/2006 00:19

Perfect, call-logger, exactly what I was looking for. Thanks very much.

Regards, Ian

[ved] 23/10/2006 21:30

Hi Call-Logger

Thanks for the info. I stand corrected

[call-logger] 23/10/2006 21:17

Here you go Ian

Demerger of Biffa Plc - Capital Gains Tax


For the purpose of Capital Gains Tax calculations the base cost of the old Severn Trent Plc ("Severn Trent") shares you held immediately prior to the demerger and share consolidation must be apportioned between your new Severn Trent shares and the Biffa shares received in the following ratio: new Severn Trent shares 78.7%, Biffa shares 21.3%. This is based on:

the dividend ratio of one Biffa share for each old Severn Trent share held;
the consolidation of the Severn Trent shares in the ratio of two new Severn Trent shares for every three old Severn Trent shares held;
a fractional entitlement, by way of cash, for any fraction of a new Severn Trent share as a result of the consolidation; and
the respective market values on 9 October 2006, determined according to normal CGT rules, of 1440.00 pence for new Severn Trent shares and 259.88 pence for Biffa shares.
For example if you owned 1,000 old Severn Trent shares immediately before the demerger and share consolidation, with a previous base cost of £5.00 per share (a total base cost of £5,000) the base cost for CGT purposes of the 666 new Severn Trent shares held after the demerger and share consolidation would be £3,935 (less the fractional entitlement payment) and the base cost of the 1,000 Biffa shares you received in the demerger would be £1,065. For CGT purposes the base cost of the new Severn Trent shares is adjusted to reflect any fractional payments received.

Please note that if your Severn Trent shares were acquired in a number of transactions at different prices or if you also own other Biffa shares, the determination of the base cost of the shares you sell will also depend on the CGT matching rules. If you are in any doubt about your taxation position you should obtain professional advice.

[jeffian] 23/10/2006 19:41

Thank you all, but I'm more confused than when I started! When I've had these situations before, once the relevant closing prices are established it simply works out as a percentage so I hoped some kind soul was going to tell me simply SVT x%/BIFF y% (it is, after all, going to be the same apportioment for everybody). Clearly not! But thanks for your efforts, anyway.

Regards, Ian

[call-logger] 23/10/2006 17:46

Hi Ved

I think it depends on what they mean by "immediately after the merger"

The merger officially happened at 6pm on Friday while the consolidation and going XD occurred at 8am on Monday IIRC.

So the earliest price for Biffa is after those two events which is why I adjusted the prices accordingly.

Is that a correct interpretation? I don't know. And as I don't own the shares I'm afraid I lack the motivation to find out for definite.

But as Ian's post had gone unanswered, I thought I'd put forward my interpretation to at least start a discussion.

[rogerl] 23/10/2006 17:19

Interesting RNS re Lehman, now holding 3.07%. The institutions will definitely be taking a close look.

[ved] 23/10/2006 15:25

Call-logger - I could not follow the logic of multiplying biff price by 1.5. I am no expert but my accountants tell me that the ratio between the two companies is determined as under:

Market value on the first day is the lower of the two prices:

(a) closing 'bid' plus a quarter between 'bid' and 'offer'
(b) halfway point between high and low

Hence SVT the halfway between high/low was - 1445p
Biffa 'bid' and 'offer'as per (a) above was - 264.25p

The ratio for distribution of cost,therefore, was SVT 84.54% Biff 15.46%

I am waiting for Investors' Chronicle to publish the figures. I will be corrected if you can quote a more competent authority.

-

[mitzis] 23/10/2006 12:53

Weekend gossip in Telegraph that Cory recycling will be bid for in the coming weeks.

[call-logger] 22/10/2006 21:05

Actually that wasn't how I did it

I multiplied the divi by 1.5 too as it is paid on the old shares = 247.5

So

SVT = 1687.5
BIFF = 405

Therefore BIFF = 405/2092.5 = 19.4% of your SVT purchase price

[call-logger] 22/10/2006 20:43

Ian

This is how I worked it out for my paper-trading portfolio

Price per share at COB Monday

SVT 1440
BIFF 270

But SVT had had a 2 for 3 consolidation so multiply BIFF by 1.5

SVT had also gone XD so add 165 to SVT

Therefore

SVT = 1605
BIFF = 405

So purchase price of BIFF = 405/2010 = 20.1% of the price paid for SVT

Plausible?

[jeffian] 21/10/2006 16:00

Could anyone help with the formula for calculating the base cost of our new SVT/BIFF shares? We're supposed to apportion the original cost of our SVT shares between the two "by reference to the market values of such shares immediately after the Demerger". Anyone got the formula for me, please?

Thanks in advance.

Regards, Ian

[rogerl] 20/10/2006 11:33

I also intend to hold for medium/long term. This is not a gee-wizz share like SOLA for example, which I also hold but with a finger poised over the sell button.

[gateside] 20/10/2006 08:35

Interim results are due on 6th December 2006

[mitzis] 20/10/2006 08:32

I'm a medium/long term holder theband and I agree re the instos buying into this.

[rogerl] 19/10/2006 23:01

Seems to be some big buys today, institutions getting into the act?

[theband] 19/10/2006 22:38

Mitzis, I'm a bit concerned you may be encouraging me to buy just so as It jacks up the price ? Luckily my building society has £100 limit per.day so.

[theband] 19/10/2006 18:00

Thanks mitzis, if it opens down a tad tomorrow may jump back in. The people at Barclayshare may question my strategy but who cares. Thing is, I dont really buy for long term. Is that how you see Biffa.

[mitzis] 19/10/2006 09:25

Not to late to change your mind theband I have bought a biffa T shirt this morning cheap @278p.

[mitzis] 18/10/2006 16:44

Quite an impressive rise since trading began last week theres always money to be made sorting out other peoples rubbish especially now everything has to be recycled.
May join the Biffaboys gang before the crowd arrives if it hasnt already.