Standard Life Aberdeen Share Discussion Threads

[cyberian] 19/10/2018 22:51

Don't get too excited by the ADR price in the US (Dow) as it was quite low volume (just below the daily average), and maybe they are also confused as to consolidation and B share issue. All will be a bit clearer on and after Monday.

[edmundshaw] 19/10/2018 19:47

Basically, the company is forcibly buying a bunch of your shares (1/8th of them) as they have too much cash. But as they are not allowed to do force you to sell ordinary shares, this rigmarole is implemented to do effectively the same thing. So you end up with 7/8ths of your shares and the same (historic) yield.

Theoretically, the share price should also not move. In practice though, people do people things which are not rational.

[cyberian] 19/10/2018 15:19

Looks like a lot of holders are still confused as to what is being implemented over next few days, and hence the company issued a further RNS early this afternoon to try and explain. However, some investors still appear to be confused...the market cap. will fall on Monday but then all current holders would have the 33.99p cash in their system to offset the fall in number of shares given in the announcement today that will be in issue after the consolidation. Then remember that another £625 million is in the pot for the buy-back program the company is committed to, and they have said a few days ago that this would start on Monday 22nd October. OK, fund managers are out of favour in the markets over recent months as one can see from one of the biggest, Blackrock Inc., and that has happened here. There are however, some significant cost savings in the pipe-line at SLA, and some other initiatives that will help the shares recover in due course, least of all a new Chairman. The markets always rotate from sector to sector but ones needs to hold ones nerve...a favourite of mine GSK fell over nearly 100p over the last week, and has bounced back by well over that amount...these things happen. Good wishes...

[spcecks] 19/10/2018 14:20

Think I will just go ahead and average down myself as will be holding long term for dividend.

[spcecks] 19/10/2018 14:17

Thanks to everyone much appreciated.

[sea and sky] 19/10/2018 13:46

Thanks: Chinese Investor19 Oct '18 - 11:59 - 864 of 868

So to simplify even further;

1 share bought now (oct 19 1345pm) at 260 divided by 8 = 32.5,
then multiply by 7 to get it's new worth = 227.5
then add 33.99p (the payment) gives you a share worth = 261.4 (profit 1.4p)

But unless you are buying cartloads, the spread/fees could make this a non-starter.

I think that's right but only from my understanding. Feel free to correct my childish maths if I am wrong.

[wilksey1] 19/10/2018 12:51

just averaged down a bit originally bought at 350p took the chance that next week we will see a rise

[scrwal] 19/10/2018 12:38

This was the 12 October RNS

B Share Scheme and Share Capital Consolidation

Further to the announcement on 5 October 2018, the Company confirms that, in connection with the previously announced B Share
Scheme and Share Capital Consolidation:

· Shareholders will receive one B Share with a nominal amount of 33.99 pence for each Existing Ordinary Share held at the
Record Time of 5pm on 19 October 2018; and
· every 8 Ordinary Shares of 12 2/9 pence each on the register of members of the Company at the Record Time will be
consolidated into 7 New Ordinary Shares of 13 61/63 pence each.

Any fractional entitlements to New Ordinary Shares which arise as a result of the Share Capital Consolidation will not be allotted to
Shareholders but will instead be aggregated and sold in the market and the proceeds of the sale (net of expenses) will be
distributed pro rata to relevant Shareholders.

Shareholders will receive the associated payments following redemption of the B Shares and, where relevant, new share certificates,
from 2 November 2018.

The Company expects the Share Capital Consolidation to become effective on 22 October 2018 and for
admission of the New Ordinary Shares to the premium listing segment of the Official List and to trading on the London Stock
Exchange's Main Market for listed securities to take place no later than 8.00 a.m. on the same date. The new ISIN number for the
New Ordinary Shares will be GB00BF8Q6K64. Standard Life Aberdeen plc will continue to trade under the ticker symbol 'SLA'.


So based on that after 5pm today any holding will be consolidated into the new shares next Monday. There will be a drop in the total holding value but you get that back when the B share payments are made.

If the holding is not in an ISA or SIPP etc then there is a chargeable CGT event on receipt of the B shares payment. Worked examples will be provided on the SLA website when the payments are made per Section V111 of the Consolidation Circular.

[spcecks] 19/10/2018 12:30

Chinese Investor Thanks I know it's what you're saying but was just wondering if better to invest in top up before or after the share consolidation.

[spcecks] 19/10/2018 12:00

Thanks tornado12 I will hold of just now as I have not got a clue what to do.

[chinese investor] 19/10/2018 11:59

I've simplified but do your own research :-

Shareholders will receive one B Share with a nominal amount of 33.99 pence for each Existing Ordinary Share held at 5pm on 19 October 2018 and
every 8 Ordinary Shares will be consolidated into 7 New Ordinary Shares.

Shareholders will receive payments from 2 November 2018.

[tornado12] 19/10/2018 11:45

Spcecks, you raise an important point. What I have seen from SLA notification this week is that the 33,99p will be awarded for each share held on 18/10. The share consolidation 8 to 7 will BA managed without any change in share price from 22/10 with dealing on same day. So next week we should better understand the fall out

[tornado12] 19/10/2018 11:33

MCunliffe1 thanks for your post and experience shared. I think all investor companies are struggling in last days with most losing >10% based partly on global fear on China/US, Italy chaos and of course Brexit. It’s reactive sentiment but keeping a cool head and not reacting to short term sentiment is key. Is clear SLA is suffering also because of where they are now in their business model. I watch, read and learn and maybe will top up in the coming weeks/months.

[spcecks] 19/10/2018 10:38

Also have some funds for a top up....can anyone explain would I have been better buying before the cut of date for the 33.9 money back or does it not matter.

[chinese investor] 19/10/2018 10:30

So would I.
I've just cashed in some Funds and I will be topping up shortly !

[mcunliffe1] 19/10/2018 10:29

Chinese Investor, I'd prefer a 4.15% yield on a share price of £5.20

[chinese investor] 19/10/2018 09:26

Yield 8.3%

[mcunliffe1] 19/10/2018 09:20

tornado12, when the share buy-back was announced the share price was considerably higher than it is now. According to some on this site the buy-back would cause the share price to rise. Since the buy-back it has done little but fall.
The SLA board aren't pulling "a blinder". Rather, I think they're simply "blind".
I do fully accept that a falling share price can only help the EPS but a falling profit will counter any such benefit. I've held these shares since de-mute. I remember the very first time there was a call for de-mutualisation - perhaps 2-3 years before the actual. It was rejected and I accept that.
However, at that earlier time I pressed the Std. Life to disclose to me what value of ahsres I would be likely to receive. They knew the value of investments in With Profits policies, their durations etc and gave me a value of approx. £60,000. I kid you not.
When they finally de-mutualised I received approx. £6500

Either they lied/miscalculated at the first point or they wrecked the value of the company during the period 1st attempt to 2nd successful de-mute.

Or, many, many new W.P. policies were sold in that intervening period.

The thing I've realised about the SL (and guess SLA is little different), they are reluctant to be open, honest and informative.

[foot in mouth] 19/10/2018 08:24

Looking at the 3 year chart we are close to the lowest point. Shall we double bottom or go further down? This share has been such a disappointment since i bought in but happy to hold for the longer term

[tornado12] 19/10/2018 06:16

My take on the risk vs reward is either the SLA board are pulling a blinder to reduce share pool, increasing EPS and future dividend protection or they are deranged with falling AUM and failing business model. My bet is on the SLA management taking a great opportunity to strengthen the share holders position 👍

[unastubbs] 19/10/2018 02:57

scrwal - many thanks for taking the time. i was making the mistake of thinking the share price would dive following the b share divestment. what you say makes sense - thanks again!

[action] 18/10/2018 16:31

Only fly in the ointment is China market which is coming down from the begining of the year and Bloomberg says even after 3 trillion wiped out this year rut is not over.

[essentialinvestor] 18/10/2018 16:03

SLA have the PHNX stake and the JV. However the company is best looked
at as a focussed play on active fund management. Let's see how AUM
looks at the next update.

[scrwal] 18/10/2018 15:44

unastubbs - page 2 of the Q & A re Sale and Return of Capital has a para How will the Sale affect my dividends. The yield will be what it is now as the consolidation scheme should ensure there is no change in the share price. ie 270.6p yesterday and after consolidation it would theorectically still be 270.6p but your shares held will be 8/9ths and you will have cash from the b shares sold ie total value is constant but its makeup changes.

[action] 18/10/2018 15:38

Average down today. Let us see what happens now.