Tui Share Discussion Threads

[steeplejack] 08/1/2021 12:53

We know the shares are Xrights in Germany and the underlying security at around 4.5 euro equates with the London price of around 4 quid.The nil paid are not due to start trading until Monday in London but the shares here and on the continent went XRights last night.The ‘record’ date on Monday,is just that,it’s an administrative process to determine subscription rights.To add to possible misunderstanding ,the nil paid are trading in Europe but not here.However,I feel confident that the shares are XRights for U.K. holders and that the shares are,to all intent and purposes,a good deal higher than last night.The XRights price factoring in dilution should be around 3 quid,but it’s not ,it’s a pound higher,suggesting that the nil paid in London will open about a quid higher than the proposed issue price of around 97p.That’s how I see it.The nil paid price will dictate the price of the fully paid and visa versa.

[typo56] 08/1/2021 12:40

It's a mystery. For whatever reason the market does seem to be valuing TUI a lot higher today than yesterday. Would have been smart to buy on yesterday midday RNS. Hindsight!

[master rsi] 08/1/2021 12:34

Typo56

re - Why are they 400p?

that is why we can not explain if the shares have gone X today, why they have such a premium

do not mix €1.07 with £
and the shares at 317p would have a premium of about 10p at yesterday prices

One thing is for sure, normally they open at a premium but as the days pass, the share price and Nil paid get closer to the real price calculated earlier

[greenstreet1] 08/1/2021 12:29

Also it appears shares are predominately listed via LSE but the whole cross/dual listing thing is quote beyond me atm, clearly a novice here

hxxps://www.tuigroup.com/en-en/investors/news/2015/ir-news/20150401

[greenstreet1] 08/1/2021 12:27

Can I ask.. If the record date is 11th Jan which I have read via HL and TUI IR webpage then would the stock not be ex-rights on 12th Jan meaning dilution of shares happens on the 12th Jan. I am very confused. I currently have a holding have been knee deep for a few years with TUI. HL have contacted me to say they will be in touch on 12th Jan presumably to find out if I will be taking up on the rights issue or not.. I dont have much choice now otherwise losses astronomical. Should have kept on top of this RI business months ago. Good luck everyone
Im thinking Tuesday will be a telling day but a true picture not really known until end of the month on where the new share price will be sitting?

[typo56] 08/1/2021 12:05

The record date has been set to 11th (11:59pm) for administative convenience (to align with T+2 settlement on the ex-date), but it's always ex-date you should to taking note of. Rights issue record dates aren't usually set so conveniently and are best ignored IMO.

[youngers] 08/1/2021 11:59

Master RSI- I thought that too but to hold cleared on 11th you had to have bought on 7th as two days to clear. Is what I was told by IR team

[typo56] 08/1/2021 11:54

If the nil paid open in London around 220 that surely values the existing shares at only €1.07 above that level? i.e. 317p. Why are they 400p?

(Yes, amended to 'stonking' as you posted - I don't get my handle for nothing!)

[steeplejack] 08/1/2021 11:54

So yes, it's a stinking result for TUI holders today. I presume you mean "stonking"!

[steeplejack] 08/1/2021 11:51

The rights often command a small "premium" over the ordinary because lower associated costs.I think that is the 'new' trading in Germany and suggests we'll see the nil paid in London open around 220 .

[master rsi] 08/1/2021 11:51

And what about that ....

"Investors holding depositary interests over the Company's shares (DIs) on 11 January 2021 will be credited with pre-emptive subscription rights (DI Pre-Emptive Rights) that will allow them to acquire additional DIs representing New Shares at the Subscription Ratio and at the Subscription Price. Investors may exercise their DI Pre-Emptive Rights from and including 12 January 2021 (after being credited with them) up to 10:00 (GMT) on 26 January 2021 (the DI Subscription Period). "

[typo56] 08/1/2021 11:50

Yes Youngers, similar to dividends with ex usually from open on Thursday and register date end of day Friday, for T+2 clearing.

For some reason UK rights issues are more complictaed in that respect. They have record dates ahead of ex-dates and there's then all the complication of filing market claims if you bought shortly before ex-date. Aligning with clearing delay makes it simpler.

So yes, it's a stonking result for TUI holders today. I'm not convinced it will last, once the market ponders on what has happened.

[youngers] 08/1/2021 11:46

So spoke to IR team. There is a two day clearing for DIs so to hold Cleared DIs on Monday you would have needed to have bought yesterday so these are now ex rights.

Looks a great result for holders today as trading way above the TERP

[typo56] 08/1/2021 11:30

If TERP is 306p the nil paids should surely track about 97p below, or around 210p? That seems to be what they are trading at in Germany. It's the existing shares that are out of kilter?

[master rsi] 08/1/2021 11:28

The Nil paid should be opening above 210p
Whenever the date ( expected on Monday ), provided the share price does not have a sudden drop today

Not a holder at the moment, but waiting for the end of the month to pick up a few

[typo56] 08/1/2021 11:23

Are these the rights? Seems a bit odd for TUI AG to be trading at €4.46 and the rights at €2.50. Looks like the rights are trading at about the 'correct' price but the existing shares too high?

Makes UK rights seem simple!

[steeplejack] 08/1/2021 11:16

Indeed and if an arbitrage opportunity does emerge,it's normally heavily exploited.

[typo56] 08/1/2021 11:07

Logically the nil paid (or whatever the equivalent term is with these subscription things) should trade €1.07 below the existing shares? If not, there's an arbitrage opportunity?

[steeplejack] 08/1/2021 11:03

Yes it's a bit of a mystery but we'll know on Monday when they open up the London market in the nil paid.For now I'll take it at face value and think that demand for rights is driving up the ordinary,a case of the tail wagging the dog.I'd like to know what price the nil paid are trading in Germany but cannot discover.

[typo56] 08/1/2021 11:01

That's record date, not the important ex-date.

[youngers] 08/1/2021 10:57

Rns says entitlement are at 11th

[youngers] 08/1/2021 10:57

Investors holding depositary interests over the Company's shares (DIs) on 11
January 2021 will be credited with pre-emptive subscription rights (DI
Pre-Emptive Rights) that will allow them to acquire additional DIs
representing New Shares at the Subscription Ratio and at the Subscription
Price. Investors may exercise their DI Pre-Emptive Rights from and including
12 January 2021 (after being credited with them) up to 10:00 (GMT) on 26
January 2021 (the DI Subscription Period).

[typo56] 08/1/2021 10:55

RNS yesterday clearly states DIs marked ex today

[youngers] 08/1/2021 10:54

WHAT IS THE REASON FOR TUI GROUP GIVING OUT DEPOSITARY INTERESTS (DIS) IN THE UK?
TUI shares being German securities are not available for trading directly on the London Stock Exchange. In this context TUI issues a substitute called Depositary Interests (DIs) instead. One Depositary Interest represents an entitlement to one TUI share.

hxxps://www.tuigroup.com/en-en/investors/FAQ/Share

[typo56] 08/1/2021 10:54

I've read that HL have been telling clients that it's trading ex today. Entitlement based on holding at close yesterday.