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Gilts, bonds, and interest-bearing shares
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Postby OldBoyReturns » February 12th, 2024, 12:45 pm

Jwdool wrote:What was the market price of the Tate & Lyle when they were cancelled? Were holders compensated?

Here you go: ... eeting.pdf

Resolution 22 on page 6 plus Explanatory Note on page 7. Coupon was 6.5% and return of capital was at nominal value plus payment for accrued dividend with no additional compensation as far as I can see.

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Postby 88V8 » February 12th, 2024, 3:12 pm

OldBoyReturns wrote:
Jwdool wrote:What was the market price of the Tate & Lyle when they were cancelled? Were holders compensated? additional compensation as far as I can see.


Looks as if they were trading around ten points above par pre-announcement.
Probably few holders and not worthwhile for them to make a fuss.
As you say, it does illustrate that the possibility is not totally off the table.


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Postby NealMorris » February 12th, 2024, 7:07 pm

So NTEA, another dodgy one then

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Postby hostye » February 13th, 2024, 2:32 pm

NealMorris wrote:So NTEA, another dodgy one then

Only dodgy if you fail to read or understand the documentation!
I would think the repayment at par clause was originally inserted to give investors comfort they would likely get their money back if the licence was lost (essentially a back stop bid).

I suspect any attempt to re-nationalise would entail some degree of fairness towards owners/shareholders etc and I can't see Berkshire Hathaway rolling over too easily to accept a below market value offer from the UK Government. They will want at least fair market value. Could get messy but I reckon I know who has the better lawyers!
Looking back at some old notes Berkshire Hathaway owned 69% of the pref and 92% of the equity (possibly this could have changed but unlikely by any significant amount).

At current prices the market is pricing in this uncertainty/risk in my opinion.

Also worth reading Ofgem's terms of revoking licences here ... conditions.

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