Shares Corporate Action Rights Issue (EasyJet)
Discussion
Ok, go easy on me - I’m don’t work in finance and know little about most of it - however for many years now I’ve had a share dealing account and just played at it - never huge sums - just like my version of playing the lottery and being vested in some companies. One of which is EasyJet.
I received this email:
“ The Company has recently announced a Rights Issue and the terms are 31 for every 47 Ordinary held at 410p per share.
Under the terms of the offer, as you purchased the shares prior to the ex-rights date you will receive 208 Nil Paid shares. You may then make one of the following elections:
1. Accept the offer, thereby exchanging your Nil Paid shares at a total cost of £852.80 for 208 New Ordinary shares.
2. Sell your Nil Paid shares (through our dealers on the usual telephone dealing line).
3. Take no action - in this case your right to exchange your Nil Paid shares will lapse and the Nil Paid holdings will be removed from your account. Any proceeds which may be payable on these lapsed rights will be credited to your account.”
I don’t really get it - what the pros or cons are to the options? Is anyone able to explain it for a simpleton?
I received this email:
“ The Company has recently announced a Rights Issue and the terms are 31 for every 47 Ordinary held at 410p per share.
Under the terms of the offer, as you purchased the shares prior to the ex-rights date you will receive 208 Nil Paid shares. You may then make one of the following elections:
1. Accept the offer, thereby exchanging your Nil Paid shares at a total cost of £852.80 for 208 New Ordinary shares.
2. Sell your Nil Paid shares (through our dealers on the usual telephone dealing line).
3. Take no action - in this case your right to exchange your Nil Paid shares will lapse and the Nil Paid holdings will be removed from your account. Any proceeds which may be payable on these lapsed rights will be credited to your account.”
I don’t really get it - what the pros or cons are to the options? Is anyone able to explain it for a simpleton?
mattcooke99 said:
Yeah I decided to buy them. Hoping that the US opening to international visitors again will have a positive effect in general on european travel.
Then again. I’m not good at these things so I may have just cursed us all by sinking in deeper.
Binning off the tests and removing the fear of your green list holiday suddenly being moved to the amber or red list will have a much bigger impact than the US opening imo. Then again. I’m not good at these things so I may have just cursed us all by sinking in deeper.
Easyjet and the other low cost carriers should recover when these changes come in to place.
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