National Grid Transco B Shares

Jun 22, 2005 7 Replies

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Gobble.D.Gook 21 years ago

NGT are currently returning cash to sharholders due to a sale of assets.

They are reissuing ordinary shares on a 43 for 49 basis to reflect the lower overall value, and also returing the cash by the issue of B shares.

Shareholders have the option of

Receiving a single dividend of 65p per B share, following which they will no longer hold the share.

Selling the shares to JPMorgan Cazenove at 65p per share (dealing and commission free)

Holding on to them, and selling for 65p at a future date.

Could anyone explain what the difference is between option 1 & 2 (as they both effectively seem the same to me)?

And what the advantage of hold the shares for sale in the future would be? (apart from receiving a continuing dividend, which would probably be very low).

Thanks

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Phil Thompson 21 years ago

taxation, the dividend would be income the sale of the share would be a potential capital gain. That's why these B shares are used by Rolls Royce and others post the Robert Maxwell Memorial Budget when Brown took away dividend tax reclaim for pensions, PEPs, ISAs etc.

Phil

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Phil Thompson 21 years ago

woops, missed that. You might want your capital gain to appear next tax year not this.

Phil

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Tiddy Ogg 21 years ago

So if you don't pay CGT you may as well cash 'em in now. That's probably the default option anyway.

Putrid poetry, dismal doggerel, extrava-stanzas...

formatting link

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Gobble.D.Gook 21 years ago

Thankyou,

I don't think my holding makes for interesting Capital Gain :)

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Phil Thompson 21 years ago

me neither, but we are minnows swimming amongst sharks.

Phil

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john boyle 21 years ago

In message , Tiddy Ogg writes

True.

No, I think the default option is 'A' (the dividend) but as I gave the form back to somebody whop showed it to me yesterday and as, (as Mr Ronald Raygun will testify) my memory aint so good in my dotage, I may have got it wrong.

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Ronald Raygun 21 years ago

I almost missed that as it whizzed past.

Your what? Memory? Oh yes, I remember, that thing that helps you remember stuff. Now, what were we talking about again?

Oh yes, dotage. Its dictionary definition makes depressing reading, except for the "second childhood" bit, which sounds rather fun. I can hardly wait. Hey, I'll race you to the beach. Last one in the water's a rotten egg.

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