Contact Energy - CEN Chart

[gonzo56]

Hey,
Just a question, I have 6 rights (haha, I only own 48 shares from the bonus issue) , if I choose to sell my rights, DB will charge me $30 wont they?
Or if I choose to buy only 6 shares for $5.05 I will be charged then too. I was just wondering, because these are renounceable, can I just do nothing and get paid out my $5 worth, without being charged a transaction fee higher than what my rights are worth...?

[winner69]

Hey,
Just a question, I have 6 rights (haha, I only own 48 shares from the bonus issue) ,

if I choose to sell my rights, DB will charge me $30 wont they? Probably so not really an option

Or if I choose to buy only 6 shares for $5.05 I will be charged then too. Buy the 6 shares at $5.05 in the rights issue and no brokerage etc

I was just wondering, because these are renounceable, can I just do nothing and get paid out my $5 worth, If you do nothing you will get athe difference between what the book build price is and $5.05 (not $5.05) so you could be in for a windfall of 30 cents or something


without being charged a transaction fee higher than what my rights are worth...?

as above in red

[percy]

Pay the $5.05 per share and take up your rights,or do nothing and CEN will sell them, and send you a cheque.I would take them up.$30.30 and no brokerage.Usually/sometimes shares will rise once rights issue is out of the way.I also think CEN is a good share to hold.

[winner69]

Pay the $5.05 per share and take up your rights,or do nothing and CEN will sell them, and send you a cheque.I would take them up.$30.30 and no brokerage.Usually/sometimes shares will rise once rights issue is out of the way.I also think CEN is a good share to hold.

I don't think he would get the $5.05 .... only the difference between the bookbuild price and the $5.05 ... so if the instos buy the shares not taken up at $5.10 gonzo would get 30 cents ......... afterall the right to buy at $5.05 has been foregone

Then again I may be completely and utterly wrong

[macduffy]

I don't think he would get the $5.05 .... only the difference between the bookbuild price and the $5.05 ... so if the instos buy the shares not taken up at $5.10 gonzo would get 30 cents ......... afterall the right to buy at $5.05 has been foregone

Then again I may be completely and utterly wrong

You're right there, winner.

In theory, the bookbuild should see a price close to but probably a little less than $5.05 plus the last price at which the rights trade. Again, assuming that the rights are somewhere around 85c, the 6 rights will be worth a total of something around $5 to the lucky owner!

Update; Rights are a bit stronger today - trading at 93c.

[winner69]

You're right there, winner.

In theory, the bookbuild should see a price close to but probably a little less than $5.05 plus the last price at which the rights trade. Again, assuming that the rights are somewhere around 85c, the 6 rights will be worth a total of something around $5 to the lucky owner!

That would mean the instos paying full price for the shares .... and not getting their hands on the cheap ones eh

Soome I have seen in Aust the bookbuild price has not been much more than the price offered .... my bet in this case is $5.10 and gonzo gets 30 cents .... hope he is set up for direct crediting otherwise a lot of paperwork and all that sort of stuff eh

[percy]

I don't think he would get the $5.05 .... only the difference between the bookbuild price and the $5.05 ... so if the instos buy the shares not taken up at $5.10 gonzo would get 30 cents ......... afterall the right to buy at $5.05 has been foregone

Then again I may be completely and utterly wrong

Sorry I did not make my post clear. He would get 30 cents.Gonzo,I would take them up,also take dividend reinvestment and your holding will grow,without further funds from you.

[gonzo56]

Thanks everyone, I will take them up at $5.05. Thats good there is no transaction fee. How do you actually do it?

[macduffy]

That would mean the instos paying full price for the shares .... and not getting their hands on the cheap ones eh

Soome I have seen in Aust the bookbuild price has not been much more than the price offered .... my bet in this case is $5.10 and gonzo gets 30 cents .... hope he is set up for direct crediting otherwise a lot of paperwork and all that sort of stuff eh

Well, we'll have to wait and see.

With the rights trading now at 93c - an all-up price of $5.98 to the buyer - I'd be mightily surprised if the bookbuild came out at around $5.10, which it would have to if gonzo is only to get 30c total for his 6 rights!

[percy]

Thanks everyone, I will take them up at $5.05. Thats good there is no transaction fee. How do you actually do it?

They will send you the paperwork.You sign it,and return it with a cheque.