Cineworld Share Discussion Threads

[mozy123] 20/2/2018 20:03

the banks need a cut. i mean thats the only reason to do rights issues. They could have asked for a credit line.

[sharw] 20/2/2018 19:49

I can only refer you to my experience last time as detailed in post 1690 when the rump was paced at 338p and I received 107.32p/rights share (108 less expenses). So fees should be around that proportion.

[royjs] 20/2/2018 19:08

Thanks

Any idea what the fees are is it % of total value?

[nav_mike] 20/2/2018 18:03

Its all in here :)



Rump = the block of shares that were not taken up under the rights issue, and subsequently placed in the market by the underwriters

[royjs] 20/2/2018 17:28

Thanks sharw, where did you find that information and what does Rump mean?

[sharw] 20/2/2018 17:17

Rump has been placed at 238 so you will get 81 less expenses

[royjs] 20/2/2018 10:25

I see on this site they're selling rights for 89p so if it's legit it's in line with the 85p previously mentioned?

hxxp://www.hl.co.uk/shares/shares-search-results/c/cineworld-group-plc-nil-paid-rights

[royjs] 20/2/2018 10:21

Thanks Hyden, she took up rights for 450 shares so remainder is 1393 so would be £4736 but guess it depends when they sell rights but hopefully around the 240p and obviously less fees.

[hyden] 20/2/2018 09:10

Okay royjs, it sounds like your fiancé would have been entitled to the proceeds from the lapsed rights from the 2014 rights issue so it is good that she is pursuing this.

Regards the current rights issue, she will be entitled to ~242p (current share price) - 157p (rights issue price) = 85p x 4 (as 4 rights were awarded for each share owned) x 1,843 shares = ~£6,266.

Aside from the movement in the markets over the intervening period, you are no worse off as a result of the rights issue.

[royjs] 20/2/2018 08:43

Thanks Hyden, yes she had certificated for a portion of the shares as she had started in 2007 in the scheme. You are correct in 2014 she was part way through another 3 year scheme but because she left the company in 2015 came out of the scheme and they refunded he investment so in 2014 had certificates ( 2 different investment codes) one for 450 shares the other for 1393, she sold 750 in 2013. So at the time of 2014 rights issue she had 1843 shares with certificates. She's emailed signal asking and will follow up with phone calls if no response but guess things are busy at the moment?

I see yesterday the price was around 243p, it was the cut off date for taking up the rights so they will try to sell on the rights not taken up from today. Is it likely that these could sell at around 240p or will it be a lot less than current price? I appreciate they will sell for whatever they can sell for and nobody knows but would you expect it to be the around share price of the day (242p as I type) or a bit less?

[hyden] 19/2/2018 22:44

royjs, Mozy123 raises a relevant point. If your fiancé was still in the Cineworld sharesave scheme in 2014 rather than actually owning the shares outright then I would suggest that the outcome would have been as per Mozy's post. When did your fiancé receive her share certificates?

[royjs] 16/2/2018 13:41

Thanks sharw for calculation correction we’ve written to signal and will follow up as it seems something went wrong

[sharw] 16/2/2018 13:14

royjs - lapsed rights are sold and the proceeds aggregated so everyone gets the same - that is the 107.32p per lapsed share in the 2014 rights I mentioned in post 1690. This is always the default 'do nothing' option and she should have received the money automatically.

The rights were 8 for 25 so your calculation should be (1843/25) x 8 x 107.32 = £632.93

I am still unclear as to whether these are held by the registrar (Link of Beckenham, previously Capita) or some nominee (you mention signal). Whichever, they should hold records back to the year dot.

[royjs] 16/2/2018 12:25

Thanks Mozy123, yes we went back through account details and can't see any

[mozy123] 16/2/2018 12:08

Royjs - my dad has a similar scheme at his work. Dividends and other corporate actions are used to buy more shares. Check the transactions as there might have not been any cash but more shares credited to the ball and chains acc ;)

[royjs] 16/2/2018 11:48

Thanks clarksc, are you referring to 2014 or recent one. In the documents there isn't a box to allow rights to lapse it's either take up full or part offer or if your quick enough sell rights but need to return form by 9 Feb.

Thanks Hyden so would that be for 2014 (share count/8)x 25 x 108p - costs so in my Fiancé case (1843/8)x 25 x 108p = £6,220 (less costs). Should she try again with signal shares?

[hyden] 16/2/2018 11:04

royjs, the 2014 rights issue shares were placed at 338p so less the deduction of the 230p issue price leaves 108/p per share. See the link below



Your fiancé should therefore have received a cheque for 108p per right less dealing costs. In my opinion, she is entitled to the money and has a valid claim. 2014 is certainly not too long ago in law so she can still pursue this. The company in question must have kept records as they are legally required to do so. If need be, you will be able to take the matter to the financial ombudsman who will also award interest on top (at 8% pa, I believe).

[clarksc] 16/2/2018 10:57

Hi,

I ticked the box to allow my rights to lapse. The CINN shares are showing in my account so can I still sell them?

[royjs] 16/2/2018 10:02

Morning sharw, sorry to bother you

You mentioned in your 1690 post that in 2014 there was a rights issue that you did nothing and got something back. Did you tick the box to sell rights and return the form by deadline or just did nothing and cheque came?

Reason I ask is my partner has had previous rights letters and never understood the options other than buying more share which she wasn’t able to do. So she did nothing and got nothing? No maybe the rights were attempted to be sold on and they weren’t successful or they were sold at a profit less than total of £5 less costs?

She’s checked her account online and no record of anything. What are her options to find out if she’s missed out? She tried signal who look after them but they said they couldn’t help as it was too long ago?

[royjs] 15/2/2018 15:22

she was an employee there years ago and got them at a reduced price each month out of her pay so built them up over a few years but left there 3 years back. So for her it was a good investment if worth still worth £10K as cost her about £4K.

We've decide to take a gamble and buy an extra 1800 shares costing £2,826. She should hopefully get back 1392 lapse rights £4.6K if 240p, then she'll have 3643 shares worth £8.7K at 240p but have obviously spent £2,8K.

So fingers crossed there's a recovery in the next 6 months,if it reaches 300p then been worth the gamble but could go the other way?

thanks

[mozy123] 15/2/2018 14:48

Speak to the furture wife. She has £10k of Cineworld. Must of been some good reasons to buy it.

[royjs] 15/2/2018 12:10

Thank you guys....

incidentally I know nothing of investing and have looked into it but seems so many account managers are in it for themselves but if I had few 1000's to invest would an account manager be interested in getting me some returns could you recommend any appreciate they'll not be interested in small amounts?

[sharw] 15/2/2018 12:03

Yes, Mozy123's calculation is correct although they are 240 at the moment so that is original shares worth £4423 and £6119 the value of the rights. That demonstrates the gearing of the rights.

That increase makes you £1000 better off but a share price wobble would take it away again so unless you are certain (who can be?) that share prices will go up between now and October I know what I would do.

[mozy123] 15/2/2018 11:55

Yes indeed - just depends on the market and how many other sellers there are when they are liquidating the lasped rights - a huge supply of shares could make you worse off.

[royjs] 15/2/2018 11:31

Thank you Mozy123, that's the bit I was missing so in that case she'd get back £5234 (less fees)if we let it lapse and still have £4200 worth of shares that could go either way. I do hope that is the case?