National Grid Share Discussion Threads

[pseudosphere] 30/5/2024 20:40

bountyhunter, the joint underwriters can purchase 645p shares from National Grid. They are not supposed to short them, although there may be exceptions in their underwriting agreement, so some opportunity for a bit of skullduggery?

The Rights Issue is fully underwritten by Barclays Bank PLC ("Barclays") and J.P. Morgan Securities plc (which conducts its UK investment banking activities under the marketing name J.P. Morgan Cazenove) ("J.P. Morgan") acting as Joint Sponsors, Joint Global Coordinators, Joint Bookrunners and Underwriters.

In connection with the Rights Issue, the Underwriters and any of their respective affiliates may, in accordance with applicable legal and regulatory provisions, take up a portion of the Nil Paid Rights, the Fully Paid Rights and the New Shares in the Rights Issue as a principal position and in that capacity may retain, purchase, sell, offer to sell or otherwise deal for their own account in securities of the Company and related or other securities and instruments (including Nil Paid Rights, Fully Paid Rights and New Shares) and may offer or sell such securities otherwise than in connection with the Rights Issue (including through coordinated action to dispose of any New Shares which they are required to subscribe for as underwriters), provided that the Underwriters and their respective affiliates may not engage in short selling for the purpose of hedging their commitments under the Underwriting Agreement (subject to certain exceptions contained in the Underwriting Agreement). Accordingly, references in the Prospectus to Nil Paid Rights, Fully Paid Rights and New Shares being offered or placed should be read as including any offering or placement of Nil Paid Rights, Fully Paid Rights and New Shares to either of the Underwriters or any of their respective affiliates acting in such capacity. In addition, certain of the Underwriters or their affiliates may enter into financing arrangements (including margin loans) with investors in connection with which such Underwriters (or their affiliates) may from time to time acquire, hold or dispose of Nil Paid Rights, Fully Paid Rights and New Shares. Except as required by applicable law or regulation, the Underwriters do not propose to make any public disclosure in relation to such transactions.

[bountyhunter] 30/5/2024 19:44

>> slightly politically staged?

The same thought occurred to me Uty, have they made some kind of pact, which makes me wonder what JPs political views are. Even if the case I don't think you can trust two housed Reeves!

A large UT trade at the close lifted the closing price from 237 to 243.



Also there's some weird trades at 19:08 @645p, the rights issue price! What on earth are they.

[dexdringle] 30/5/2024 18:20

I know but the share price will fall by an equivalent amount on ex-div date so it'll be net neutral.

I suppose the yield on £8.70 average cost won't be so bad so I'll be paid while I wait to get my money back.

This is no where near as bad as my £70k 'investment' in SJP shares at £10 each and which are now £5 each 😕

[utyinv] 30/5/2024 18:08

Dex post 9374.

You will still get the Divi in Aug 🤷

Some saving grace. Al in all this time next year you may find that your actions were sound.

[natasonline] 30/5/2024 17:42

Wonder what the eventual take up is going to be. How many of us buy the Rights? Do we get that data on the 5th or the 12th?What are your guys predictions? I see mostly negative reaction on forums, but most people seem to be buying them if only reluctantly.I'm predicting 80% take up.

[dexdringle] 30/5/2024 17:24

Bought these bloody things a few days ago at £9 thinking some kind of wierd anomaly had caused the rights to noble the price more than it should have.

I've now found myself today doubling up to average down to around £8.70.

I should have researched a bit more before jumping in. I suppose them getting back to £8.70 isn't out of the question but I'd rather not be chasing losses this soon !

[pierre oreilly] 30/5/2024 16:58

Fri is position closing day for the w/e.

Any, well many, shorts will be closed.

last weeks fortunate/brave/intuitive/market reading sellers will now be buying back in much cheaper. Well done.

All imv.

I doubt pis have any effect on the price - the insts will, and will be attracted to the 5.3% gov backed index linked return currently available,

[pierre oreilly] 30/5/2024 16:51

Another rights?

Of all the quoted companies in the uk, ng. is the least likely to have another rights in the next 6 years.

This due to ng. being unlike all other companies. Everything it does has to have regulator approval. The 6 year funding plan was drawn up and/or approved and certainly ordered by ofgem (i.e. the government). The idea is to give clarity in funding nd spending - and ng. will not be allowed to deviate too much from the plans just presented. The upside of having a regulator is that they will ensure the plans are carried out, and another rights isn't in the plan.

Even the bank loans to come will be easy to get. If ng. have problems raising the further billions required from the banks, then the gov would step in and order them lend the cash, at a normal rate.

Amost everything about ng. is unique and completely different to all other ftse companies. Best to look at it as a part of the government, not an independent company (all regarding the regulated business).

[gilesy911] 30/5/2024 16:35

Never thought this would end the day ...blue

[gilesy911] 30/5/2024 15:19

Am I right in thinking this will keep dropping until after the XD date

[dexdringle] 30/5/2024 14:59

No I didn't. I'm talking about market cap not assets.

£7 billion chucked in and end up with the same market cap.

[utyinv] 30/5/2024 14:55

Dex,

You forgot to add the £7billion in cash to your calculations. The company will start increasing its market cap from when deals are settled but shareholders won’t really benefit because of dilution. However, you have to speculate to accumulate.

No doubt the timing of this announcement GE, period of great shareholder interest ( final results and dividend yield), makes me wonder if this wasn’t slightly politically staged.

However, we can only hope for NG doing the right thing, ie, if you bought a house for £0.5m but needed work on it, cleverly invested say £0.25m if all
Planning was passed through, then after the project was completed, even without the affect of inflation, the house could easily be worth £1m.

JP just needs to remind Labour and the Conservatives that NG is not a charity and that we are a profit seeking business, one that doesn’t need State handouts. NG should not be tapped for funds to cover the mistakes of Government.

[zicopele] 30/5/2024 14:32

Essential...that is why yield has to be higher tgan 5%.

[essentialinvestor] 30/5/2024 14:20

No guarantees they won't need a further equity raise, the CAPEX mentioned is an extraordinary amount and debt now significantly more expensive than the ZIRP era.

[dexdringle] 30/5/2024 14:11

Before the rights the market cap was 3.69bn shares x £11 = £40bn

After the rights it'll be 4.76bn shares at £8.30 = £40bn

So shareholders will have pumped in £7bn new money and ended up with the same market cap.

My car is worth £5,000. I spend £1,500 tarting it up and it's then worth £5,000. Not exactly money well spent.

[pseudosphere] 30/5/2024 13:42

Pander45, if you buy the rights at the current price, then including the 0.5% tax paid, it means that you can currently get ex-div NG. shares at under 788p.

But they may go lower - who knows?

[pal44] 30/5/2024 13:42

Will this drift down to 670p I wonder

[bountyhunter] 30/5/2024 13:17

(just speed read loads of posts so probably missed a lot!)

Jf, good point but the 2038 bug doesn't have much of a ring to it!

Z, agreed re

Commencement of dealings in New Shares, fully paid, to commence on the London Stock Exchange..8.00 a.m. on 12 June 2024

I might wait until then if I don't by back on June 7th. Still rather concerned about Reeves however, but that doesn't just apply here it's pretty much across the board!

[utyinv] 30/5/2024 13:09

Zicopete post 9355

Existing shareholders get the opportunity to buy cheap. Why not new shareholders?

Does that really warrant an answer?

For those that might think it does:- because existing shareholders are having their holding diluted and hence, the value of that holding. Also, existing shareholders own the Company or theoretically they do.

[berny3] 30/5/2024 13:05

well put my last buy order in and looks like it was too low, unless we get an another tick down on US open. Seems a bargain to me at these prices.

[pander45] 30/5/2024 13:00

Anything sub 800 is a solid investment imho.

[garycook] 30/5/2024 12:57

You could get 750/760p.But IMHO not as low as 700p.But you never know in this Market !

[zicopele] 30/5/2024 12:54

Yiield has to increase for risk of more capital requirement I am in at 700p if it goes that low.

Cant see why not. Existing shareholders get the opportunity to buy cheap. Why not new shareholders?