Phoenix Share Discussion Threads

[jonwig] 28/9/2016 09:23

p49b - there will be a date at which the shares go "ex-rights" (second half of Oct) and you'll be credited with "nil-paid" rights shares, which you can sell in the market or redeem by paying for your new shares.

In this case, it looks worthwhile to take up the offer, though I have a problem (shared by others, I imagine) that my PHNX are in an ISA which hasn't enough cash spare - I'll have to sell something.

speedsgh - thanks for your analysis in post #1803.

[rcturner2] 28/9/2016 09:17

lol that's what a rights issue is

[p49b] 28/9/2016 09:16

Will the rights issue be available to current shareholders?

[pimsim] 28/9/2016 09:16

Think it works out at divi of 50p per share in 2017. With adjusted share price after rights issue around £7.32 (taking today's price at £8.64). So divi yield in 2017 around 6.8%. Don't hold me to these calculations!

[edmundshaw] 28/9/2016 09:10

Cheers madmix. Yes, I recognize that phrase "bonus element". I hadn't reached the notes!!

[edmundshaw] 28/9/2016 09:08

scburbs, if so, and with the 7 for 12 this transaction would take us onto an 8% yield by my sums. Seems unlikely.

[madmix] 28/9/2016 09:05

I suspect the dividend will be adjusted as edmundshaw suggests. See note 2 :

(2) Stated after adjusting the 2015 dividend per share for the bonus element of the Rights Issue and based on the closing share price as at 27 September 2016 of 838.5p.

[scburbs] 28/9/2016 09:01

It seems clear the 10% dividend increase is per share, which is great with discounted rights issue.

[speedsgh] 28/9/2016 08:59

A quick comparison of the AXA Wealth & Abbey Life acquisitions...

AXA Wealth acquisition (announced May 2016):
> £375 million in cash
> Acquisition to add £12.3 billion of assets under management and over 910,000 policies
> Acquisition expected to generate cashflows of approximately £0.3 billion between 2016 and 2020 and £0.2 billion from 2021 onwards
> Price / MCEV of 71%(4) and Price / Solvency II Own Funds of 85%(5)
> Supports a proposed increase of the 2016 final dividend by 5% to 28.0 pence per share, equivalent to 56.0 pence per share on an annualised basis

Abbey Life acquisition (announced Sep 2016):
> £935 million in cash
> Acquisition to add £10 billion of assets under management and approximately 735,000 policyholders
> Acquisition expected to generate approximately £0.5 billion of aggregate cashflows between 2016 and 2020 and approximately £1.1 billion in aggregate from 2021 onwards
> Attractive price representing 0.89x multiple of Solvency II Own Funds and 0.77x of MCEV(1)
> Acquisition will support a proposed increase in dividends in respect of 2017 to £197 million, representing a further 5%(2) increase in dividend per share ("DPS") in addition to the 5% increase in DPS as a result of the AXA transaction

[edmundshaw] 28/9/2016 08:55

The dividend could be adjusted for the discounted shares, of course - I recall Connect PLC did that (to the accompaniment of some rather unfair investor whingeing). So I am not banking on more than a 10% uplift in overall return as yield.

[rcturner2] 28/9/2016 08:42

The rights issue is an interesting one, because presumably the ultimate share price will be lower once the rights shares are admitted, but they are raising the dividend by 10% so the overall yield on the lower share price will be stonking.

[jonwig] 28/9/2016 08:38

A rights issue - ages since I've taken part in one of these!

[edmundshaw] 28/9/2016 08:25

Looks a good deal on the face of it. Got up late, still reading... but 0.77x of ALAC's MCEV sounds pretty good to me.

[rcturner2] 28/9/2016 08:21

Happy days with that acquisition.

[edmundshaw] 20/9/2016 11:17

Add back the recent 26p dividend and the price is doing OK.

[jonwig] 16/9/2016 07:59

Apparently first aired yesterday, here:



Serviceable Google translation:

[cwa1] 16/9/2016 07:27

16 September 2016

Phoenix Group Holdings Statement re. Press Comment

Phoenix Group Holdings ("Phoenix") notes recent media speculation regarding a possible acquisition of Abbey Life Assurance Company Ltd ("Abbey Life") and confirms that it is evaluating a potential transaction.

As stated at the time of the interim results on 25 August 2016, Phoenix continues to explore further acquisition opportunities in the UK closed life sector. In this context, Phoenix is in advanced discussions with Deutsche Bank in relation to a possible acquisition of Abbey Life. There can be no certainty that these discussions will lead to a transaction.

The person responsible for arranging for the release of this announcement on behalf of Phoenix is Gerald Watson.

Any further announcement will be made as and when appropriate.

[garycook] 15/9/2016 03:21

Yes PHNX,will return to the 900,s.Just a matter of time.

[skinny] 14/9/2016 14:25

HSBC Hold 831.25 920.00 920.00 Retains

[robsy2] 08/9/2016 10:18

OK 26.7p.
R2

[fenners66] 08/9/2016 09:54

Cheers for confirming Blue

[bluemango] 08/9/2016 09:46

Ex-div today.

[garycook] 01/9/2016 05:45

Great Company,and very well managed.Good core holding,still yielding 6.43% on next years Dividends of 56p.

[robsy2] 31/8/2016 15:38

Well spotted fellas. The market seems to agree with the logic.
R2