Shareholder - Idiot Guide to Required Action?

[rottie155]

I was umming and aahing for a while and decided to take the plunge and bought an extra 981 shares (the full amount I was offered).

Now just to wait and see what happens going forward as Jonjo mentioned.

 

[Jonjo]

DW and I had a chat about the recapitalisation again over the weekend and even though we originally decided we were not going to take part, today DW contacted our broker and put us down to purchase the additional shares.

I think last weeks quantitative easing announcement by the Central European Bank and the falling value of the Euro helped swayed our decision.

 

[missiemouse]

So let me get this straight...

if I commit to buy the extra 900, either it will work out and I'll get 1.25 and make a bit of a profit

or it won't go through and I won't buy the 900 anyway.

If this is correct it seems a no brainer but I keep thinking I must have missed something?!

 

[Jonjo]

So let me get this straight... if I commit to buy the extra 900, either it will work out and I'll get 1.25 and make a bit of a profit or it won't go through and I won't buy the 900 anyway. If this is correct it seems a no brainer but I keep thinking I must have missed something?!

If the offer is not over subscribed and you choose to sell your shares to TWDC, then yes you will be able to realise 1.25. But don't forget to double check if your broker is going to charge you transaction fees for the purchase and sale of the shares.

 

[cazspence]

Would it be pointless me buying 100 shares? I'm still undecided. I already hold 101 and my shareholder membership is valid so I would have grandfather rights if they keep thier word. If I sold them back I know I would make no profit on that amount due to broker fees of £13 each time. Does anyone think they are likely to go up again eventually? Anyone got a crystal ball. Lol

 

[Jonjo]

With the falling Euro and the state of the French economy I would be surprised if they get above €1.30 in the next 24 months.

I know for sure they will never get to the dizzying heights of €9 again.

 

[RoseBug]

I am just doing nothing for now. It is all too much for my little head to take. I honestly do not understand ANY of it!

However my work colleague pulled me about it today. He had bought shares/joined shareholders club last year for his summer trip (on my suggestion), and sold back most of his shares when he got home. He is technically still part of the shareholders club, but doesn't own 100 shares (not sure how many he still has) and he asked if he will be able to remain a shareholder as he is still a member now? I said I didn't have a clue, but I suspect not and I don't think he can re-buy now to boost up to 100 again?

 

[Jonjo]

New applications to the shareholders club closed on 16 Jan, and your friend would not be able to purchase more in the recapitalisation to put them back to 100 shares to re-join as they are basing membership on your shareholding as of 16 Jan.

They have not yet officially confirmed how many shares you will need to be a new member when the club re-opens for new applications once the recapitalisation is completed. But a figure of between 900 - 1000 has previously been mentioned.

If your friend still holds some shares, they are still a shareholder of the company until they sell all their shares. They won't be a member of the shareholders club as they will not hold enough shares to be members.

 

[eeyorefanuk]

Rosebug like you I am confused :

Jonjo can you make it easy for me please

I have 24 shares

I have had an email from selftrade to say I can buy 24 x 9 shares at one euro 25

Confused after that

 

[Jonjo]

Rosebug like you I am confused : Jonjo can you make it easy for me please I have 24 shares I have had an email from selftrade to say I can buy 24 x 9 shares at one euro 25 Confused after that

Well your options are:

Do nothing and still own 24 shares.

Take part in the recapitalisation and buy more shares in the company. Up to a maximum of 9:1

You can then either keep the new shares you have purchased or sell them to TWDC.

Your other option is to keep your shares and sell your option to TWDC.

If your unsure on your options you should speak to your broker and seek professional advice from an independent financial advisor.

 

[eeyorefanuk]

Well your options are:

Do nothing and still own 24 shares.

Take part in the recapitalisation and buy more shares in the company. Up to a maximum of 9:1

You can then either keep the new shares you have purchased or sell them to TWDC.

Your other option is to keep your shares and sell your option to TWDC.

If your unsure on your options you should speak to your broker and seek professional advice from an independent financial advisor.

Thanks jonjo.

I am not worried about the money side as I can only have 9:1

if I keep at 24 shares when my membership runs out do I lose the perks?

and if I buy the 9:1 this then takes me over the 100 I keep the perks?

Thanks for your patience

 

[Jonjo]

Thanks jonjo. I am not worried about the money side as I can only have 9:1 if I keep at 24 shares when my membership runs out do I lose the perks? and if I buy the 9:1 this then takes me over the 100 I keep the perks? Thanks for your patience

Membership to the club will be based on the number of shares you held on 16 Jan. If you were an existing member of the shareholders club with a valid membership card before the 16 Jan you will be grandfathered in to the club in the future as long as you still old your shares without a break in ownership.

 

[eeyorefanuk]

No - membership to the club will be based on the number of shares you held on 16 Jan. If you were an existing member of the shareholders club with a valid membership card before the 16 Jan you will be grandfathered in to the club in the future as long as you still old your shares without a break in ownership.

Thank you

So the offer of buying the extra shares is

1. For WDTC to obtain funds ?
2 possible chance of making money in future especially if can buy extra 900 shares like some can?

 

[Jonjo]

Thank you So the offer of buying the extra shares is 1. For WDTC to obtain funds ? 2 possible chance of making money in future especially if can buy extra 900 shares like some can?

Well it's for Euro Disney to raise funds, otherwise the park goes into bankruptcy and for TWDC to increase it's shareholding in Euro Disney SCA

For perspective existing investors very little as far as I can see. IMO existing shareholders who partake in the recapitalisation and take up the option to buy additional shares are on a path to loose money in the long run, when another recapitalisation will have to be done in 2024 when the debt needs to be repaid to TWDC.

Why I've decided to partake I don't really know. Sentimentality I think, because this recapitalisation is not a sensible investment opportunity. If it was any other company I would not be touching it with a barge pole. But it's DLP, a place that I've become attached to and want to help save it.

 

[missiemouse]

2 possible chance of making money in future especially if can buy extra 900 shares like some can?

I imagine the only way of doing this is by taking up the tender offer and selling them back to WDC, then you will make a small profit. I would think it's highly unlikely to make a profit otherwise, given the financial state of the company

 

[cherrymarzipan]

Well your options are:

Do nothing and still own 24 shares.

Take part in the recapitalisation and buy more shares in the company. Up to a maximum of 9:1

You can then either keep the new shares you have purchased or sell them to TWDC.

Your other option is to keep your shares and sell your option to TWDC.

If your unsure on your options you should speak to your broker and seek professional advice from an independent financial advisor.

I've decided to partake but still am very unclear.

"You can then either keep the new shares you have purchased or sell them to TWDC." - does this mean that if you decide to sell to TWDC you can sell just the new shares and keep the original ones? I can't see why they would do that? I had assumed that if you sold you had to sell all your shares.

"Your other option is to keep your shares and sell your option to TWDC" - what is the option? and how does that differ from doing nothing?

Sorry if I am being really thick.

 

[cazspence]

I've decided to partake but still am very unclear. "You can then either keep the new shares you have purchased or sell them to TWDC." - does this mean that if you decide to sell to TWDC you can sell just the new shares and keep the original ones? I can't see why they would do that? I had assumed that if you sold you had to sell all your shares. "Your other option is to keep your shares and sell your option to TWDC" - what is the option? and how does that differ from doing nothing? Sorry if I am being really thick.

Ye this is where my dad who is very experienced in This area couldn't understand. He said there has to be a catch. Why would they sell them to you at €1 just to buy them back for €1.25. That catch being that you must sell all shares. Not just the new ones purchased. So as it is I am selling my rights (options) and keeping to my 101 shares that I have.

 

[missiemouse]

Ye this is where my dad who is very experienced in This area couldn't understand. He said there has to be a catch. Why would they sell them to you at €1 just to buy them back for €1.25. That catch being that you must sell all shares. Not just the new ones purchased. So as it is I am selling my rights (options) and keeping to my 101 shares that I have.

I assumed this originally too, but others seem to say you can buy the 900 and sell them straight back, keeping the original 100. I can't work it out from the info the Halifax have sent me, but it does seem too good to be true. I'd like to see it written officially somewhere but, as I know nothing about shares, I can't make head or tail of all of it.

 

[Ware Bears]

"Your other option is to keep your shares and sell your option to TWDC" - what is the option? and how does that differ from doing nothing?

So as it is I am selling my rights (options) and keeping to my 101 shares that I have.

Please could you clarify exactly what this means cazspence, and if you have to actually do anything?

In the 'important notification' from Halifax it states Please note we will endeavour to sell all unexercised Rights on your behalf prior to the expiry of the Rights Issue. Our ability to sell any unexercised Rights is dependent on there being a market for the Rights. If there is no market for the Rights we may not be able to sell the Rights. Any sale proceeds you are entitled to after the sale of unexercised Rights will be credited to your account in due course.

Does this mean if we do nothing (as I was going to do - I've got my 101 shares and can't be bothered to withdraw money from my savings to fund the purchase of the new shares before selling them again even if I could make a small profit - guess this is why I'm not a millionaire! ) we could end up with a small sum coming our way? Even if I do absolutely nothing?

My head hurts

 

[missiemouse]

Found it - this is in the official shareholders letter

"You want to sell (in all or part of ) your shares in the MTO initiated by TWDC: TWDC will offer to buy back your shares at €1.25 each."

So you don't have to sell all. It gives an example of someone who originally has 100, buys 900 during the offer, then sells 200 back. So it is definitely possible to just sell the 900