Rsa Insurance Group Ld Share Discussion Threads

[skinny] 04/4/2014 15:47

From my broker (HL).

Option 1 - Do nothing. If you do not return an instruction by the deadline of 3.30pm on Monday 7 April 2014, the Offer will lapse and your Rights will be removed from your portfolio. If a lapsed Rights cash payment is made it will be credited to your Account upon receipt.

[fangorn2] 04/4/2014 15:31

As far as I'm aware, if you let your rights lapse, then the broker in question usually sells those rights and credits your account with the proceeds.

[dope007] 04/4/2014 14:27

Fall in bond valuations, so double edged sword as capital gets whacked

[jimcar] 04/4/2014 14:17

Isn't RSA one company that could benefit from higher interest rates? The investment return it gets from invested premiums would be much higher. It was the fall in this that caused the start of the poor performance a few years ago.

[dope007] 04/4/2014 11:05

Put interest rates to normal 4-5% and stop all the QE and then see how much it is worth. The markets are a mirage of wealth for bankrupt nations

[dope007] 04/4/2014 09:57

Another example of the stupidity of the current market is found here with RSA. No way is this worth 93p ex rights. but good luck to everyone

[investoree] 03/4/2014 13:34

Having my SIPP fully invested in order to take up my RSA rights I had to sell some CLLN shares that I didn't want to at the moment just to raise the cash. Now the idiots have decided to extend the offer deadline because it is near the end of the tax year which meant that I needed have sold any shares - why didn't they have the sense to realise that the tax year end/start was imminent at the time they made the announcement. I will now be adding to my SIPP in the new tax year and then have both that and the balance from the sale of my CLLN sitting uninvested. No wonder the RSA share price is languishing where it is with a total lack of supervision, oversight and common sense forward planning!

[diku] 01/4/2014 23:29

The way its going up since it was marked ex rights by end of week it will have recovered all of the ex rights fall!....

[bill hunt] 01/4/2014 22:49

In effect a five to one consolidation but the nominal value is 5*20=£1 but the shares of 7.5p are of little value or significance.

[optomistic] 01/4/2014 22:34

bill hunt...that must make it crystal clear then...but not to me :-/

[bill hunt] 01/4/2014 17:19

Thanks for that Skinny. It was the deferred share which I could not fathom. On research, it would seem that the deferred share will be of little or no value. The consolidation will be 5 into 1 with a deferred share which will have little of no value. this will occur after the split of the 27.5 share into 20p and 7.5p share then a consolidation of five 20p shares then the rest are deferred shares. Hope this is right.

[skinny] 01/4/2014 08:57

bill hunt - the crux of the numbers :-

"3 FOR 8 RIGHTS ISSUE AT 56 PENCE PER NEW ORDINARY SHARE
Further to the announcement on 27 February of its preliminary results for the year ended 31 December 2013, RSA Insurance Group plc ("RSA" or the "Company") today announces the launch of a rights issue to raise £773 million in proceeds (£748 million net of expenses) (the "Rights Issue"). The Rights Issue is a fully underwritten 3 for 8 rights issue of 1,380,976,863 ordinary shares of 27.5 pence each in the capital of the Company at a price of 56 pence per New Ordinary Share.
The Issue Price of 56 pence per New Ordinary Share represents a discount of approximately 40% to the closing price of 93.4 pence on 24 March 2014 (being the last business day prior to the release of this announcement) and a 32.7% discount to the theoretical ex-rights price based on the closing price on 24 March 2014."

[skinny] 01/4/2014 08:52

Goldman Sachs Neutral 89.43 89.55 84.33 92.00 Retains

[bill hunt] 31/3/2014 22:12

Can somebody explain the implications of the proposed share division and consolidation along with the deferred share?

[jonntara] 28/3/2014 18:41

When you get your nil paid rights the share price should drop because each of your shares contains a smaller number of assets and a smaller proportion of the businesses profits because more shares will be in circulation. When the strike price is announced the price should adjust. If you add the value of your nil paid rights to the value of the share holding the share price on the value of your holdings has actually gone up during the last few days which is a very good result.

[wllmherk] 28/3/2014 13:38

I ve never been involved in a RI before. Am I correct in assuming that when these go ex rights, like ex dividend, the share price generally falls ?

thx

wllm

[dope007] 28/3/2014 11:07

Rise could be end of quarter window dressing

[sawadee3] 28/3/2014 10:59

Can't beat these rights issues for easy money :-)

[optomistic] 28/3/2014 10:11

Yes yam, quite in contrast to the other insurers suffering from the prospects of a pension probe this morning. Reckon we are lucky RSA didn't go towards the pension business or there wouldn't be much share price left.

[yam114] 28/3/2014 09:40

Share price is holding up well even increasing slowly. Perhaps there is hope after all.

[optomistic] 28/3/2014 09:27

Sold my nil paid held in ISA...no funds to take up the offer and the ISA fully funded for this year.
Will take up the rights held in my trading account.

[woodwards26] 27/3/2014 13:55

Halifax has a 4th option cashless take up of rights 3 Nil Paid Rights for every 8 RSA Insurance Group PLC (RSA) Ordinary shares held on the Ex-entitlement Date of 26th March 2014. Each Nil Paid Right entitles the holder to subscribe for 1 New RSA Ordinary share at a price of 56 pence per New Ordinary share. Holders of Nil Paid Rights have the following options: Option 1 - Take up their Rights. Option 2 - Partial take up of their Rights. Option 3 - Sell their Rights. Option 4 - Cashless take up of their Rights. How This Affects You:You Have The Following Options: 1 Take up your Rights to buy xxxxxx RSA INSURANCE GRP shares at a cost of xxxxGBP. We will process your instruction on or after 03 April 2014.Your election will be applied to your holding of Nil Paid Rights at this time and based on the terms of the Offer. Please ensure funds to take up your Rights are available as detailed in the 'How Will Payment be Made?' section.If you do not have sufficient cleared funds to take up all of the specified number of shares then we will take up the maximum number of shares we can based on the funds available.2 Take up your Rights to buy a specified number of RSA INSURANCE GRP shares. We will process your instruction on or after 03 April 2014.Your election will be applied to your holding of Nil Paid Rights at this time and based on the terms of the Offer. Please ensure funds to take up your Rights are available as detailed in the 'How Will Payment be Made?' section.If you do not have sufficient cleared funds to take up all of the specified number of shares then we will take up the maximum number of shares we can based on the funds available.3 Sell your RSA INSURANCE GRP Nil Paid Rights. If you wish to sell your Rights, the following conditions will apply:Your Nil Paid Rights will be sold on the next working day after we receive your instruction and will be based on your holding of Nil Paid Rights at that time.We will only attempt to sell your Nil Paid Rights once. No further attempts will be made.A contract note will be made available confirming the sale details.We may aggregate your sale order with orders from other RSA INSURANCE GRP shareholders opting to sell RSA INSURANCE GRP Nil Paid Rights; this may result in a slightly more or less favourable price than a sale of your Rights alone. The price obtained will be the best price available at the time we execute your deal in the market.Our standard dealing charges will apply.The availability of this option is dependent on there being a market for the Nil Paid Rights. If there is no market available we will not be in position to sell the Nil Paid Rights on your behalf. Should we not be able to sell the Nil Paid Rights we will instead allow the Nil Paid Rights to lapse.4 Fund the take up of the Rights by selling some of your RSA INSURANCE GRP Nil Paid Rights. If you wish to sell some of your Rights in this way, the following conditions will apply:We will sell sufficient Rights to take up the Rights on the remainder.Your Nil Paid Rights will be sold on the next working day after we receive your instruction and will be based on your holding of Nil Paid Rights at that time.We will only attempt to sell your Nil Paid Rights once. No further attempts will be made.A contract note will be made available confirming the sale details.We may aggregate your sale order with orders from other RSA INSURANCE GRP shareholders opting to sell RSA INSURANCE GRP Nil Paid Rights; this may result in a slightly more or less favourable price than a sale of your Rights alone. The price obtained will be the best price available at the time we execute your deal in the market.Our standard dealing charges will apply.The remaining Rights will be taken up under the terms of the Rights Issue.The availability of this option is dependent on there being a market for the Nil Paid Rights. If there is no market available we will not be in position to sell the Nil Paid Rights on your behalf. Should we not be able to sell the Nil Paid Rights we will instead allow the Nil Paid Rights to lapse.Lapse - If you decide to take no action your Rights will expire or lapse after the Offer closes.The Company will arrange for the shares that these Rights entitled you to buy to be offered for sale in the market. Any premium obtained above the Rights Issue price, less expenses, will then be paid to you. The total number of shares you will own will stay the same. However, the proportion of the company you own will reduce as more shares will be in issue.Important Information & Other Key Dates:On 25th March 2014, the Board of RSA announced the launch of a fully underwritten Rights Issue to raise GBP773 million in proceeds (GBP748 million net of expenses). The net proceeds of the Rights Issue will be held as cash or low-risk investments in order to improve the Group's capital strength and surplus over its capital requirements.The Rights Issue price of 56 pence per New Ordinary share represents a 40 percent discount to the closing price of 93.4 pence per Existing Ordinary share on 24th March 2014, the last business day prior to the announcement of the Rights Issue.The Nil Paid Rights were admitted to trading on the London Stock Exchange's (LSE's) main market for listed securities on 26th March 2014, with dealings in the Nil Paid Rights also commencing on that date.Please note that as a result of the Rights Issue the book cost of your underlying Ordinary shares will be adjusted to reflect the crediting of the Nil Paid Rights to your account. This figure represents the book cost apportioned to the Nil Paid Rights for taxation purposes. The availability of all options which involve selling Nil Paid Rights is dependent on there being a market for the Nil Paid Rights. If there is no market we will not be in a position to sell the Nil Paid Rights on your behalf. Should we not be able to sell the Nil Paid Rights we will instead allow the Nil Paid Rights to lapse.If you accept the Rights Issue, the New Ordinary shares are expected to be credited to accounts on 10th April 2014, with trading of the New Ordinary shares on the LSE also commencing on that date.Unless you hold your shares in a ShareBuilder account, entitlements to New Ordinary shares will be rounded down to the nearest whole number. Any fractional entitlements will not be issued and instead will be aggregated and sold in the market for the benefit of the Company.If you wish to accept the Rights Issue and intend to fund the take up of your Rights by selling existing shares held in your portfolio, you will need to ensure that the trade settles on or before 3rd April 2014 in order to ensure cleared funds are available by our deadline.Before making any decision please take into consideration all relevant factors of the event including the current share price and any possible tax implications. If you require any further information in making your decision please contact an appropriate professional advisor.If you have any queries regarding this event please do not hesitate to contact us.Should you wish to find more information about the Rights Issue or the Capital Reorganisation, please visit the RSA website, www.rsagroup.com.What Happens If I Don't Elect ?If we do not receive a valid election from you, your Rights will lapse. Should lapsed proceeds be issued, we will credit your account as soon as payment is received.When Is The Last Time I Can Elect ?Please ensure you submit your option before 03 April 2014 to enable us to process your instruction in accordance with the Company's timetable for this event.How Will Payment Be Made ?Your Cash Management Account must be funded with sufficient cash by 03 April 2014.