Rights Issue Re Barclays Shares

[Maggoty]

Hi guys

I have received a small cheque in the post for 'Rights provisionally allotted to you but not take up to be sold". My original shareholding has not been sold.

Sorry if I seem dense but I was not the one that looked after this sort of thing - what does it mean? Did I have the right to buy more - and that right has now been sold as I haven't bought more?

Thanks guys

[emeritus]

They probably wrote to you and offered you the opportunity to buy additional shares at a discounted price (rights). Looks like you didnt take up the offer so your rights have been sold (not shares). It doesnt affect your holding but there are now more shares in the company so the value of the shares will have been diluted.

This gives more info
http://www.sharesexplained.com/rights-issue-of-shares

[Maggoty]

Thank you - thought that that might have been the case.

Thanks again

x

[factor-fiction]

And the cheque you have received is for the proceeds of the rights you didn't take up which have now been sold on

[New Judge]

Just out of interest, Maggoty, do you mind saying how much (per share) you were paid?

The Rights issue was priced at ££1.85 per share when the ordinary shares were trading at about £2.85. This made the “rights” worth about £1. I took up the rights (and so bought shares at £1.85 which are now worth about £2.75 at today’s trading price). I’m just interested to know how much was paid out for the rights which were not taken up.

[Maggoty]

according to the paperwork 'premium per Right' was 82.598pence.

does that help :-) ?

[New Judge]

Thanks Maggoty. I'm still in front !!!