Renewable Power & Light Share Discussion Threads

[omellete] 18/2/2009 16:51

I think it was not a good idea to buy today, as tomorrow you will actually pay 5-8 pence for what could be 25 pence.

Anyway the sellers today messed the price up and will likely not get what they thought they would i.e 16pence share price + 10 pence extra.

That would be too good to be true.

[jonnyred] 18/2/2009 15:48

Or the other way to look at it is, if you buy today, you're only really paying 5p for the rest of the assets (another 10p of cash + power plants worth 15p (? I believe)

[omellete] 18/2/2009 15:36

Thanks - a much better summary and absolutely clear.

The MM's get the 10 pence and the sellers get now except the money for the shares sold.

[jonnyred] 18/2/2009 15:20

I've spoken to the LSE who confirmed that the stock will be marked xd tomorrow the 19th. If you sell shares today, the entitlement to the dividend goes with it irrespective of the record date as determined by the RPL's statement. If you sell today, you do not get the dividend. If you want to clarify for yourslf call the LSE.

[omellete] 18/2/2009 14:36

Dusseldorf - The picture is not clear. The MM's are buying shares where they are not eligible to the capital reduction.

The MM's are buying stock for 15 pence today and it will be reduced by 10 pence tomorrow. They are losing 10 pence a share straight off.

My info has come via WINS. We shall see what happens but it is not a Divi. I am waiting for the total payout as I know in the past that these guys will reclaim whatever they can and what they are eligible for.

If people get to sell shares AND keep the money then fair play, but I don't think it is that easy. They will have the liability to repay. No such thing as a free lunch.

Best to check with your broker and get them to check with the MM's.

[dusseldorf] 18/2/2009 13:55

RNS just out confirms that holders as of yesterday are eligible for the payout:

Renewable Power and Light Plc
18 February 2009

?
Renewable Power & Light plc
("RPL" or the "Company")
Result of Court Hearing to approve Initial Return of Capital RPL announces that, at the Court Hearing held earlier today, the Court confirmed the Share Premium Reduction. The Share Premium Reduction will take effect upon the registration of the Court Order confirming the Share Premium Reduction. The Initial Return of Capital as described in the Circular sent to shareholders on the 8th January 2009 will therefore proceed accordingly. As announced by the Company on the 16th February 2009, shareholders registered as at the 17th February 2009 (5:00 pm) will be eligible to receive the Initial Return of 10p per share.

The timetable below sets out the events going forward. This is in line with the timetable set out in the announcement made by the Company on the 16th February
2009.


omellete - I'd get a refund from your mate 'in the know'

[metaphysicalman] 18/2/2009 13:52

The circular posted by RPL and available on their website clearly states:

"the Company is therefore seeking the approval of shareholders to reduce the Company's share premium account by an amount in US dollars such as would permit a payment to all shareholders registered as members of the Company at 5pm on the business day prior to the final hearing of the claim form seeking confirmation of the Share Premium Reduction (the "Record Date") of 10p per Ordinary Share...On the Effective Date, the Company's Share Premium Account will be reduced by the Reduction Amount and arrangements will be made to return the Reduction Amount to shareholders registered as members as at the Record Date in the form of a payment of 10p per Ordinary Share."

So shareholders who sold this morning will definitely get the 10p.

Why would they have to repay the 10p?

[omellete] 18/2/2009 13:18

Well after checking with a more knowledgeable source - he says that todays sellers will not get the 10 pence or at the least will be liable to repay 10 pence if they receive it. It is a capital reduction NOT a special Divi.

The MM's buying the shares will have bought at 15 pence and will not get the 10 pence SO.............. that means they will get it from you.

Tomorrow is the actual date. So do not spend the money if you receive it.

We shall see anyway. But it is not a DIVI so those rules do not apply.

[kiama] 18/2/2009 11:55

Anyone selling will be will NOT get the 10p per share!!

People selling now are making a big mistake! Look at the agenda the price will be amended tomorrow to reflect that cash has left the company!! Yesterdays date was not an EX date like a dividend payment!

[dusseldorf] 18/2/2009 10:47

safer to hold if unsure, when the price begins to fall it will be clear, but perhaps no-one is really sure - even MM's are just number crunching monkeys balancing books on 50+ stocks (I base my opinion on having met two).

[omellete] 18/2/2009 10:39

I think the 19th is the correct date as must do the MM's.

Anticipated Effective Date for Share Premium Reduction 19 February 2009

[omellete] 18/2/2009 10:27

Surely someone has got it wrong? Either the MM or the sellers.

[dusseldorf] 18/2/2009 10:26

omellete - the record date is as of 5.00pm yesterday i.e. that's the record they will look at when distributing, IMO selling is safe, but I am not, I have hedged a future decline by opening an SB short.

[omellete] 18/2/2009 10:17

Duss - Are the sellers making a mistake? They obviously think they are smarter than the MM's. Surely only holders who hold until Feb 23rd get paid?

[smcl] 18/2/2009 06:23

Dusseldorf

Thanks for info.

smcl

[dusseldorf] 17/2/2009 17:09

nominees will get a cheque, they will cash it and distribute to shareholders - so IMO, process will take a while

[omellete] 17/2/2009 15:46

I wonder how the auction of the power plants is going. If they can get 16 pence then I would be happy as the shares would be more than free then.

It is a waiting game with cash tied up, but at least some of that cash becomes free in the next week or so.

Will nominee holdings just get a credit to their accounts (as per smcl's question)? I don't want a cheque!

[dusseldorf] 17/2/2009 13:10

I guess it's all in the timing i.e. how long it will be necessary to wait and what can actually be realised. I'm assuming to from the cash remaining that the shell 'RPL' will want to keep some for an acquisition...thus the balance may only be the proportion of 16p that can be realised - 8p worse case?

Anyway, am sure it won't be a straight line down, some may well be lucky with an exit netting them profit at no risk

[omellete] 17/2/2009 12:52

yes - but we still have assets of 16 pence + circa 10 pence a share remaining after that.

[dusseldorf] 17/2/2009 11:42

Don't want to be a doom monger, but given we're getting 10p distribution as of record today, does that not mean a fall of circa 10p tomorrow?

[smcl] 16/2/2009 16:36

Looking for some advice/info-

If you hold shares in nominee account - how would funds be sent?

Thanks in advance

smcl

[andrbea] 14/1/2009 17:59

What's the idea thereafter?
Give all the capital back (net value)
Then fold & delist?

or become a cash shell?