Aviva and General Accident Preference Share Tender

[stockton]

.......... The fact that they have escaped those losses is a miracle ....................

No miracle involved !
It is a long time since I have visited the City but I suspect that most relevant people there believe that
a) the cancellation of a share in return for compensation is redemption, and
b) the word "irredeemable" means "cannot be redeemed".

In consequence, if a company issues shares which it describes as irredeemable, the company is deliberately giving up any right which it may have to cancel those shares unilaterally.
If subsequently the shares are cancelled without the agreement of the holders - however that may occur - this constitutes a breach of the contract formed at the time of issue of the shares (and the company should be liable for any such breach).
The surprising aspect is that "cancellation at par" ever got off the ground.

[ReformedCharacter]

Kind of dumb response I expect from Alaric.

Perhaps you could explain why you think the comment was dumb and why you are resorting to insults.

I don't think you'll get your second question answered. I don't think he can help it.

RC

[Alchemist]

Perhaps you could explain why you think the comment was dumb and why you are resorting to insults.

I don't think you'll get your second question answered. I don't think he can help it.

RC

[Off-topic part deleted]

eg. Last week I made a post, (not referring to him directly), that was quickly removed because he did not like his title.

Moderator Message:
Just looked back. Your post last week was deleted because it contained a profanity. - Chris

I also pointed out the No Preference Shares, (Not any Aviva Preference Shares which included a premium to cancel in the form of a special dividend), have been cancelled at par.

Since he does not hold any preference shares himself; the negative constant posts from him and his alter egos can only be designed to lower the preference share prices presumably because they are short.

Alchemist.

[stockton]

Best to check your facts before posting. In 2022 Tate & Lyle prefs were cancelled at par which was a small discount to the market price.
https://uk.advfn.com/stock-market/londo ... L/89209959

[Alchemist]

Best to check your facts before posting. In 2022 Tate & Lyle prefs were cancelled at par which was a small discount to the market price.
https://uk.advfn.com/stock-market/londo ... L/89209959

Thank you for that.

It is hard to find information about it - Around that time Tate and Lyle had a very large Rights issue, ( around 30%), which may have had a major influence plus the fact the the Tate and Lyle reputation had also suffered very significant damage because of reports in Cambodia and elsewhere but OK let's accept that Tate and Lyle preference share, (which were trading around par), were cancelled at par plus dividend due which was around their market price at the time.

They were trading around par and were cancelled around par OK.

Are there any others ?

Alchemist.

[NealMorris]

There have been other instances outside the UK, some of which have resulted in law changes. I'm sure it may have been Australia from memory?

[wmb194]

In 2005 two issues of Shell Transport prefs were cancelled at par plus a premium to recognise they'd been trading above par and the accrued dividend.

https://www.shell.com/investors/informa ... ation.html

[Jwdool]

Subject: A Suggestion for Keeping the Discussion Useful

May I make a respectful suggestion?

It would help greatly if posters who are still learning or uncertain about a topic could frame their contributions as questions rather than assertions. Many of us on this board have long experience in the markets and are very happy to help clarify points or offer insight where we can.

That’s not to say mistakes won’t happen – we all get things wrong from time to time – but recently there’s been a noticeable divide between well-researched contributions and others that are more speculative, sometimes even misleading. That in turn seems to generate tension, particularly when opinions are expressed forcefully but without the depth of understanding to support them.

This board should be a resource that everyone can benefit from. A bit of humility and clarity goes a long way. Let’s try to keep the tone professional and avoid the sniping – especially when it’s based on shaky ground and risks confusing others.

Thanks all.

[jdepp55]

Does anyone else have an issue with HL account value for these prefs?
I hold all 4, some which were tendered and show assured line and some which were bought post vote cut-off date given that they yielded a good return and were likely be to be cancelled (as subsequently confirmed).
Its a lazy question, my other broker shows correct valuations but a simple starting point is here.

[GoSeigen]

Does anyone else have an issue with HL account value for these prefs?
I hold all 4, some which were tendered and show assured line and some which were bought post vote cut-off date given that they yielded a good return and were likely be to be cancelled (as subsequently confirmed).
Its a lazy question, my other broker shows correct valuations but a simple starting point is here.

Some brokers are showing ex-dividend prices, at least for the Aviva shares. Others still show the price cum-dividend. I wouldn't worry about it too much.

GS

[daveh]

Does anyone else have an issue with HL account value for these prefs?
I hold all 4, some which were tendered and show assured line and some which were bought post vote cut-off date given that they yielded a good return and were likely be to be cancelled (as subsequently confirmed).
Its a lazy question, my other broker shows correct valuations but a simple starting point is here.

Some brokers are showing ex-dividend prices, at least for the Aviva shares. Others still show the price cum-dividend. I wouldn't worry about it too much.

GS

and some brokers don't show anything at all. My AV.B shares at HSDL were removed as I offered to tender them.

They should have delisted as of yesterday (AV.A and AV.B):

https://www.investegate.co.uk/announcem ... s-/8879175

and settlement is expected to be on 22May. I'll be interested to see what price I get at my two brokers (ie do I get the voting fee)and when the money appears for the shares, the special dividend and the voting fee. Do they all turn up at the same time?

[88V8]

...I'll be interested to see what price I get at my two brokers (ie do I get the voting fee)and when the money appears for the shares, the special dividend and the voting fee. Do they all turn up at the same time?

Judging by past tenders, the voting fee is likely to be separate and may not arrive simultaneously. Also, some brokers are better at sorting out and timeously allocating the payments.

V8

[monabri]

...I'll be interested to see what price I get at my two brokers (ie do I get the voting fee)and when the money appears for the shares, the special dividend and the voting fee. Do they all turn up at the same time?

Judging by past tenders, the voting fee is likely to be separate and may not arrive simultaneously. Also, some brokers are better at sorting out and timeously allocating the payments.

V8

ii stated (for GACB)

"Under the terms of the cancellation, shareholders will receive a cancellation payment of GBP1.35 per share, and a dividend payment of GBP0.016 per share. Eligible shareholders who participated in the company’s voting process will also receive a voting fee of GBP0.02 per share. The cancellation, dividend, and voting fee payments will be made separately. The cash is expected to be released by the company on 12th June 2025. We will allocate the proceeds to accounts when we receive them from the company."



iWeb stated (for GACA)

"GBP1.560 per Preference share held, this payment comprises GBP1.00885 Par Value, 51.115 pence Special Dividend and 4 pence Accrued dividend at the time of Cancellation.

If the Cancellation is implemented, a Voting Fee of 2 pence per share will be paid to eligible Preference shareholders separately."



Looks like the voting fee(s) will be paid separately.

[phil57]

It's early in the day I know, but today 22/5 is "is the expected date of payments of the Cancellation Amount to all Preference Shareholders and of the Voting Fee to eligible Preference Shareholders in the manner set out herein." for the AV.B Aviva plc 8 3/8% Cum Irrd Pref shares - i.e. when Aviva is due to pay its custodians the dosh.

I see nothing on HL (apart from a not too re-assuring n/a under price and value in my account!) yet.

Presumably they will take their time to pay in the traditional manner.

I suggest a sweepstake - I'm betting on Monday week June 2nd before I see the money:-)

[Laughton]

Even for HL, that's being a bit harsh.

Monday May 26th is my bet.

iDealing paid the dividend on AV.A this morning.

[the0ni0nking]

Even for HL, that's being a bit harsh.

Monday May 26th is my bet.

iDealing paid the dividend on AV.A this morning.

I doubt they'd do anything on a UK bank holiday!

[phil57]

Even for HL, that's being a bit harsh.

Monday May 26th is my bet.

iDealing paid the dividend on AV.A this morning.

That reminds me I have some AV.A with A J Bell - nothing from them today (yet) either!

[Laughton]

Even for HL, that's being a bit harsh.

Monday May 26th is my bet.

iDealing paid the dividend on AV.A this morning.

I doubt they'd do anything on a UK bank holiday!

Ooops! I'm of an age where every day is a bank holiday.

[monabri]

Even for HL, that's being a bit harsh.

Monday May 26th is my bet.

iDealing paid the dividend on AV.A this morning.

That reminds me I have some AV.A with A J Bell - nothing from them today (yet) either!

Nothing received at ii nor iWeb.

[NearlyThere]

This is what ii say:

Share Cancellation & Tender Offer Update

Cancellation amount: GBP1.52 per share, plus a dividend of GBP0.04 per share
Cancellation date: 6th June 2025
Payment date: 12th June 2025

At their recent general meeting, shareholders of General Accident plc approved the company’s proposed cancellation of its 8.875% Cumulative Irredeemable Preference Shares. As a result, the cancellation is expected to become effective on 6th June 2025, and the previously advised Tender Offer will no longer proceed.

Under the terms of the cancellation, shareholders will receive a cancellation payment of GBP1.52 per share, and a dividend payment of GBP0.04 per share. Eligible shareholders who participated in the company’s voting process will also receive a voting fee of GBP0.02 per share.

The cancellation, dividend, and voting fee payments will be made separately.

The cash is expected to be released by the company on 12th June 2025. We will allocate the proceeds to accounts when we receive them from the company.