International Consolidat... Share Discussion Threads

[lufty] 20/9/2020 12:28

Hi M1k3y1 I am a bit confused still probably because I sold prior to the rights issue so have not seen any official paperwork. Is it correct that you get one right per old share or three rights per two old shares ? In other words do you get 1,000 rights for 1,000 old shares or 1,500 rights ?

[m1k3y1] 20/9/2020 11:59

Lyndon / careful...thanks.
I can see these dropping further in the short term, especially if BoJo announces new lockdown measures, which appear to be coming in the next few days.

Of course the problem is if there are still people who hold the IAG shares , having bought at 1.94 or higher, they are either committed to take up the rights at 0.85/0.88 or sell on Monday Tuesday .

I just don't see why anyone would buy the rights now, when they can just buy the ex rights shares in the market at the same price or less, if they drop further on monday?

[careful] 20/9/2020 11:16

a different approach, share prices during a rights issue could be erratic.

Todays market cap £2.2bn
Cash raised £2.5bn.

total new valuation. £4.7bn.

total number of shares after rights. 1985bn x 1.5 = 2.98 bn
theories value per share. 4.7/2.98 = £1.58.

but over the next few days weeks the boys will have their fun, the prices will be volatile.
but it will be over quickly this time. In one weeks time it could all be over.

[lyndon b] 20/9/2020 10:39

m1k3y1....agree with your 2 to 3 calc.The 'old' shares are now around 1.46 (1.10 IAG + 0.36 IAGN), so it becomes:(2 x 1.46) + (3 x 0.84) = 5.44 / 5 = 1.1 (roughly)

[m1k3y1] 20/9/2020 09:01

Logan...it's a shame the UK GOV don't have the same approach !

[loganair] 20/9/2020 08:57

IAG will continue to lose money, burning through cash until at least Easter 2021, then afterwards will be far less profitable then it was before, therefore I would have completely sold out last week at 200p. Sadly if did not 'it's too late' as the opportunity has now passed IAG share holders by.

When Covid first hit, I posted that I believed IAG share price would go sub 100p and now I would not be at all surprised to see the share price bottom out around the 80p area or even maybe a little lower.

Like with Lloyds Bank and the 2008 financial crisis, I can never see BA or IAG returning to its pre-pandemic glory days.

I can also see any future dividends paid by IAG are going to be far lower then they have been in the past.


Iberia are wishing to buy Air Europa for c€500mln only after the Spanish government has given Air Europa €400mln in state aid. It is an Iberia deal as no way would the Spanish government give state aid to a Spanish company then to immediately let the said Spanish company be taken over by a non-Spanish company.

[m1k3y1] 20/9/2020 08:13

LUFTY...."If you take the rights issue you at then at (1.94 X 2 + 0.88 X 2) = 5.64 for five new shares giving a new price of 1.13 a share which matches Friday closing price".

This is incorrect.
The calculation should be as follows 1.94 x 2 + 0.88 x 3 = 6.52 for 5 shares giving a new price of 1.304

You have to buy 3 new shares at 0.88p not 2.
So it makes no sense to take up the rights, when you can buy ex rights for circa 1.12 in the market.

[jailbird] 20/9/2020 01:54

motleyfool view

[lufty] 19/9/2020 23:17

Based on the closing prices of :-

Share price pre Rights issue 1.94
Share price at close Friday 1.12
Rights price to buy 0.88
Rights price to sell at close Friday 0.39

If you take the rights issue you at then at (1.94 X 2 + 0.88 X 2) = 5.64 for five new shares giving a new price of 1.13 a share which matches Friday closing price

If you do not take up the rights issue then you are at (1.94 X 2 - 0.39 X 2) = 3.10 for two new shares giving a new price of 1.55 per share

Unless I am missing something you are currently better off taking up the rights issue subject of course to the share price not adjusting when the new shares list.

[loganair] 19/9/2020 21:03

Looks like Rolls-Royce, the aero-engine maker, are soon to go for a £2.5bln shoring up their balance sheet Rights Issue.

[costax1654x] 19/9/2020 20:51

If it hits 60 I will buy some

[loganair] 19/9/2020 15:33

Based at Madrid-Barajas Adolfo Suárez Airport, Iberia and its employees are bracing for a second wave of the coronavirus in the Spanish capital. Starting from Monday, 21 September, parts of Madrid will be subjected to lockdown restrictions as cases of COVID-19 continue to rise. Spain now has the highest number of confirmed coronavirus cases in Europe, with Madrid once again its worst-hit region.

If a second wave of the coronavirus hits Europe as they expect, Iberia could be in for a long recovery.

[loganair] 19/9/2020 15:17

British Airways announced it extends the cancellation of all short-haul flights from London Gatwick airport until March 2021, at the earliest.

In the early stages of the pandemic, British Airways consolidated all of its Heathrow (Terminal 3 and 5), Gatwick and London City (LCY) flights to Heathrow’s Terminal 5.

For the time being, BA will continue to operate all of its scheduled short-haul flights from its hub at Heathrow Terminal 5.

[ccr1958] 19/9/2020 14:53

I am going to Malaga Monday i’ll Let you know.

[loganair] 19/9/2020 12:52

However only half of this 25% Capacity is being filled.

Also BA are really saying they are flying 25% of their flights, if flying a smaller aircraft, a 250 seater aircraft across the pond instead of the 450 seater A380, the came flight number is flying at most half the number of passengers.

[jailbird] 19/9/2020 12:34

Monty BA is flying 25% capacity at present

[montyhedge] 19/9/2020 12:28

I thought Cruz said flying about 187,000 passengers a week, this time of year, normally it should be 1.2m that's a massive decline.

[jailbird] 19/9/2020 11:57

We know this happens but no one saying no more than 6 ppl

[m1k3y1] 19/9/2020 09:17

justice...can you explain why the share price will rise to 130 -140. They are currently trading ex rights ?

[ccr1958] 19/9/2020 09:10

So not worth taking up justice With share price so low ?

[justiceforthemany] 19/9/2020 08:16

The current subscription right is effectively the equivalent of one share at the moment so true share price c. 220p

Post rights expect the share price to rise to around 130p-140p.

[lyndon b] 19/9/2020 07:10

Yes, they look correct.

[loganair] 18/9/2020 22:40

14 April 1998 Lloyds share price peak £10.70.