The difference here would be that it is the first corporate action I can recall where the Record Date has NOT been the sole determinant. As said above, why is GABI any different?
But if anyone here can cite a (further) counterexample, feel free. It is worth noting that on the VSL capital return, a number of outlets cited the incorrect ex date and ALL OF THEM cited the wrong capital return per share amount. This was profitable to those who are unafraid to question things. |
I must have misread the message from HL, and I have deleted it. In which case it is trading in the new ISIN which will be delayed by them until the allocation has been trued up. Either way, item 2 is clear, corrections will be make by brokers. Iy you sell today and then sell more of the new ISIN tomorrow than you have been allocated you will have to return some money. No one is losing out so I am not sure what the concern is? |
 hpcg - HL do appear to be trading it today. And in any event, they also did on Friday which yields the same issue.
Jam62, what you say may well be your experience, but I prefer to rely upon the document presented, as in the cases of AEET (a tender) and VSL (a capital return via a B share - like SLFR/X - and a strangely worded RNS). Although your understanding is quite possibly the one that is going to result, you have not explained how the RNS confirms this, and that is what one has to rely upon.
As Specto points out, an ex-date is NOT an ex-date when some other date governs. The final sentence in the RNS implies one of two things
- indeed any transactions prior to the 11th June but after the 6th June have the effect of changing ones entitlement - and was inserted in order that trading in the issue could continue. As opposed to AEET where they purposely froze trading over an equivalent period. Or
- all it means is that trading can continue and a sale of ISIN1 between the two dates above is turned into ISIN2, and have no difference in effect. But it settles after the Record Date and therefore cannot be counted as an entitlement. However, the previous sentence in the same paragraph implies otherwise as they say one "may" have a claim. Why not use the word "will"? |
Just got a quote for GABI no problem on HL - to buy, anyway.
So the Record and Ex can be the wrong way round because of the ISIN change, is that it? I'm still confused - Record/Ex is very clear for divis, the Ex is two trading days prior to the Record, can't be anything other under T-2 settlement. |
The old ISIN has full rights up until it expires. The register will not be up to date when the new ISIN is issued by the company. It is up to brokers to work this out amongst themselves so their customers are allocated correctly. HL are making it easy for themselves by not trading the stock today. The money will be easy because every thing will have settled. |
@jam62 - how can Record Date and Ex Date be that way round?
To take a standard dividend as an example - the Record Date is close of business on a Friday (for most), which under T-2 settlement, makes the Ex Date at open on a Thursday (the T-2 being Thursday-Friday). |
Jam62, you have not considered, it seems, why Para 1. was written - hence reconciled with Para 2. The Record Date of June 10th implies an ex-date of June 6th.
The remainder of what you wrote was not in dispute, and in any event, is perfectly clear.
You think I wrote the message because "there was nothing complicated about it"?? In the case of the VSL capital repayment, the issue of the true ex date was largely missed, and many blunders made. And that one was NOT complicated! |
Nothing complicated about this.
Old GABI goes ex at 8am Tuesday morning. New GABI starts trading Tuesday morning.
If you held old GABI at the close of business tomorrow, you are “cum” the compulsory redemption and receive your money on the 24th June.
Upon going ex, your holding will fall to 62.5% of what you originally held and will trade as new (ISIN) GABI. |
Which period? You can trade on the old ISIN until COB 10th June and on the new ISIN (same ticker) from 8.00am 11th June. |
HL have told holders there will be no trading during the period you are concerned about. That is essentially point 2 above. |
A brain teaser to start the week:
It appears to be understood that the last date on which you can buy GABI and be eligible for 3/8 of your shares to be tendered at 89.66p is Monday June 10th.
This may end up being correct, but consider the following two paragraphs from the official release detailing the Tender Offer:
1.
Further, on 29 May 2024, the Company announced that the First Compulsory Redemption would be effected pro rata to holdings on the share register as at the close of business on 10 June 2024 (the "Redemption Date"), being the record date for the First Compulsory Redemption, by applying a redemption ratio which was anticipated to be 22.5 per cent. The Company intends to increase the redemption ratio to 37.5 per cent. (the "Redemption Ratio"). Fractions of ordinary shares produced by the Redemption Ratio will not be redeemed, so the number of ordinary shares to be compulsorily redeemed from each shareholder will be rounded down to the nearest whole number of ordinary shares. On the basis of a Redemption Ratio of 37.5 per cent., approximately 159.6 million of the Company's issued shares will be redeemed on the Redemption Date.
2.
The Company's ordinary shares will be disabled in CREST after close of business on the Redemption Date and the existing ISIN number, JE00BYXX8B08, (the "Old ISIN") will expire. A new ISIN number, JE00BMFX6989, (the "New ISIN") in respect of the remaining shares which have not been compulsorily redeemed will be enabled and available for transactions from 8.00 a.m. on 11 June 2024. The share price TIDM, "GABI.L", will remain unchanged. For the period up to and including the Redemption Date, shares will be traded under the Old ISIN and as such, a purchaser of such shares may have a market claim for a proportion of the redemption proceeds following the activation of the New ISIN. CREST will automatically transfer any open transactions as at the Redemption Date to the New ISIN.
In Para 1. reference is made to holders on the Register on COB 10th June - which means they must have purchased the shares before the COB 6th June. We have had this argument before when considering the capital repayment from the (ill) VSL, and yes, the timeframe was congruent to that described above.
But in Para 2. it says "a purchaser of such shares may have a market claim for a proportion of the redemption proceeds" - referring to those bought AFTER June 6th, and before June 11th. "may" have a market claim - WTF does that mean?
Clearly the market is assuming that "may" means "will", as the share price did not really move on Friday, implying that the effective ex-date is actually COB this Monday (tomorrow).
But what if you sold shares on Friday? Um, well, you will be on the Register as of COB June 10th, so how can you not be entitled to the tender portion proceeds of such shares?
And what if you sold and then bought some back again? Well, in that case, you would be on the Register for those sold shares, but seemingly entitled to a "proportion of the redemption proceeds" on those bought back.
I cannot make head or tail of this. There is no other document other than the RNS to look to for clarification, and it is interesting that the person mentioned having written the RNS was a mere Associate Director of Apex Financial Services. It is worth recalling that in the AEET Tender Offer, there was a "frozen period" for a couple of days or so where the shares could not be traded. That would have stopped this confusion, perhaps. |
ok yep A J Bell just credited |
Yep, Hargreaves, came in yesterday. |
Anyone got the 04th June div yet ? |
Hi SkinnyPope. Thanks for posting, and for your exit rationale.
I agree with your figures (at least comparing to Mar 31 - do you have any other data points re the ex-cash discount?).
I need to think more about this but first reaction is I think/hope you are departing having consumed just the icing. and that the (ex-cash) cake underneath remains luscious (if I may borrow that adjective), though undeniably less so than the icing.
- still a 29% "pull to Par", with cashflow mid-point maybe 2 yrs away. Plus the net portfolio yield (after costs/opex etc).
- the Gravis incentive Plan implies they think there's a lot more to come
- there should be enough maturities to fund at least 1 more distribution this year
So I'm currently inclined to wait till towards year end, and see how Gravis do in the meantime - e.g. if they pull forward a lot of the longer dated loans there may at least be marzipan under the icing!
But I would be very interested in your reply and others' comments. |
Excellent flow of news the past week or so, I have sold out today.
Basic logic / maths behind the decision:
I believe the current stock of loans = £241m, current cash = £144.5m
I have NAV slightly up vs March (due to the Aussie loan redeeming above NAV) at 91.6p per share
If I strip cash out of both the NAV and off the market cap, it leaves NAV at £245m vs market cap at £192m = a discount of 22%
This "ex cash" discount has been 30%+ for past while, so given this decent re-rating plus the loan portfolio now being longer dated, I think this is a good exit level.
Good luck all. |
Depends on what price new shares start trading next week.
Including tomorrow's Dividend, we will get back 35.2p per share this month. 50% of prevailing share price before last Week's announcement. Fantastic result, especially as by average prices about 60 pence. |
Has anyone prepared any workings on wether it is worth putting the redemption monies straight back in to GABI? |
> Redemption ratio increased to 37.5% for the First Compulsory Redemption at 89.66875p per share.
> Fractions of ordinary shares will be rounded down to the nearest whole number.
> Redemption payments to be effected by 24 June 2024. |
Blimey - well my scenario of the 54m loan coming in for the 1st distribution has come to pass - but with unchanged payment date (that I was worried meant they'd given up on that possibility).
Brilliant. De-risks further. :-))) |
Recap
Dividend paid 4th June.
New shares -22.5%, commence trading 11 June. Redemption cash 20th June.
Redemption Ratio maybe increased, should further loans be repaid first week of June.
Given Australia loan repayment included Overdue interest, should be able to maintain the current Dividend rate, with fewer shares in issue going forward. |
OK, many thanks for your views. Maybe I am looking for downsides where none exist !
I was pleased with the estimated, was it £45k, cost of Distribution. Much less than I was expecting. Mine are all in tax wrappers, so for me the mandatory redemption approach is much better than the complexity / cost of B shares with multiple choices. |
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