Medway Man
29 Jan 2015
Purely by chance.......... Purely by chance I looked at the SP for Aviva. ........ Currently 532p. Which as was pointed out by folk at the time of the announcement if FLG deal was struck at 394p divided by 74ths ratio you get 532p price for Av. As i said in my posting of the other day, 24.10p divi is a great divi, 3p more than the previous full year, if the deal goes through. If its voted against, the SP will probably contract back lower, and possibly future dividends will be under pressure to be cut.Whilst i go back to the days of Resolution with this share, picking up my above average divi............. Let's remember sentiment oftens loses people money!I would rather have a reduced holding (as i sold off a part of my holding when the price peaked the other day) in a stock with rising SP and dividends as i suspect will happen with Aviva if deal finalised, than a stock going perhaps nowhere and cut divis as could possibly happen to FLG should deal not happen.For FLG holders not wanting to be a Aviva share holder, you could consider CSN (Chesnara)...... But as always, DYOR
highsnlows
29 Jan 2015
Re: Dividend Hello C.E.If the deal goes through, then there will be an effective Ex Div / Record Day on 10th April.See my Monday post below.The dividend will be 24.1p for FLG holders.Hope that helps.HnL
Cher Eugene
28 Jan 2015
Dividend I am confused and there is too much blather on this share. Can someone tell me when the next dividend is due and how much it will be? When do the shares go ex div?Many thanks.Cher Eugene up a gum tree but with a nice unrealised profit to date.
Hawkeye4077
28 Jan 2015
Re: Aviva deal I bought Resolution as it was then and it paid a good divi. The last 2 divis by FLG were 21.14p total and Aviva last two were 15.25p. On the face of it bad deal for FLG shareholders but as pointed out anything could happen to SP till D-day. Also the sum of the parts may not be as good as the whole only time will tell.
Medway Man
28 Jan 2015
Re: Aviva deal If memory serves me right, the actual price ended up being struck at 394p, not at the previously reported figure of 399p in view of the exceptional increase if divi if deal happens. As NR states in their reply, the 15% will already be within the rise in SP, which will probably pull back nearer to deal price (if the vote goes in favour) as the days pass in the countdown to it getting the go-ahead. Personally speaking, i cannot see how FLG could keep paying divis at the level they were, so whilst AV. was never a stock for me by choice, i am happy for the deal to happen, - but i decided at the outset how many AV. Shares would i be prepared to hold, so as FLG SP has risen, i have sold off some FLG, so a nice gain over cost, a good divi to come if deal goes through and other holdings purchased with sale proceeds who go ex div in the next month or two and pay good final divis in april and may........... So win, win, win as far as I am concerned.If the deal does not happen, i think there will be pressure on FLG to cut dividend, so would have reduced holding anyway.Thats just my opinion.......... As always DYOR
Neutron Ronnie
27 Jan 2015
Re: Aviva deal Surely the 15% premium went straight into the price and since then FLG shares have loosely tracked AV shares. We've had the 15%. I remember the shares leapt on the announcement day but I can't remember by what percentage.AV shares are down just over 1.5% so far today and so are FLG.
Hawkeye4077
27 Jan 2015
Aviva deal At the time the deal was announced the blurb said,"Under the terms of the offer Aviva would acquire the entire ordinary share capital of Friends Life on the basis of an exchange ratio of 0.74 ordinary shares for each Friends Life share. Based on Aviva’s closing share price on 21 November 2014, the deal would represent an indicative value of approximately 398.9 pence per Friends Life share, representing a premium of 15 per cent.Friends Life share holders will also receive a dividend of 24.1p per share."The 24.1p special dividend was a separate issue and we should have made a 15% premium on our holdings. That has been eroded way and I can't see them see jigging the deal. We need about 1 for 1 shares to get back to the a 15% premium.
highsnlows
26 Jan 2015
Re: My brain hurts trying to decide best opt... There will be a coupling I feel from now on between the 2 share prices, as they are now linked by the 74% and the 2 respected dividends. Remember, in your example that the deal will yield £3996 +£241divy = £4237 in total.On a separate issue (one that's been bugging me) the following dates are of interest:The last day to trade FLG shares will be 9th April.The scheme Record date & time will be 6pm on 9th April.The effective Record date for the divy will be 10th April It's a pity this will come after 5th April (for tax reasons). But given the 6 week rule, it's still o.k. to cash in any profit now (for tax purposes) and buy back in before the record date with a much smaller CGT being carried forward. Please comment if I've got this wrong - tax can be quite taxing!!!HnL
Hawkeye4077
26 Jan 2015
My brain hurts trying to decide best option The deal with Aviva was struck with FLG shares at 394p and they are currently at 409p (26 Jan) and will probably rise more. Aviva shares are currently 540p. At the time the deal was struck it seemed a good deal for us shareholders now it seems the only way we can come out on top is if Aviva shares rise by more than FLG. The deal gave us 0.74 Aviva shares for each FLG share. my maths if I have 1000 FLG shares they are currently worth £4090 and the proposed deal will give me 740 shares @ 540p worth £3996. A small loss but it could go either way by the time the deal is done. Maybe the 24.1p special divi might make me feel better.
highsnlows
26 Jan 2015
Re: is my maths right ??? TX2 - your description is spot on, I calculate it to be within a couple of pence. I'm still trying to discover the true date when FLG holders will qualify for the 24.1p divy. HnL
TX2
26 Jan 2015
Re: is my maths right ??? You need to multiply Aviva shareprice by 74%,deduct 12.2p(Aviva Final) then add 24.1p(FLG Final) to resultant price to get comparative price which should be close to Friends price at the moment.I think!In general I would expect a small discount to prevailing Aviva price to compensate for risk.
Windlesham Don
26 Jan 2015
Re: is my maths right ??? k9maggie - Pretty sure that your maths is incorrect (you include the FLG div, but make no allowance for AV div only available to their shareholders?), but more importantly if you could turn a profit by simply selling and re-investing don't you think everyone would be doing it?If a deal looks too good to be true then it generally is...Regards,
k9maggie
25 Jan 2015
is my maths right ??? with an ''aviva'' price 536 x 74% = 396.64 minus divi of 24.10 = 372.54pdoes this mean if the ''friends selling price'' is above the result (372.54p) one could gain by selling and re investing not forgetting to make an allowance for both selling and buying dealing costs.the larger ones holding in ''friends'' the more important calculations become......does any one know if the is the selling gain is increasing or decreasing ?? ...or as i suspect are the market makers balancing the books based on the Aviva pricing.above is based on payment at basic rate tax which i believe is how all dividends are paidas always one has to draw their own conclusions after doing their own re-searc etc.....k9
cashpharma
23 Jan 2015
Re: Approaching 400 again Deal value is .74 Aviva shares plus a final dividend of 24.1p =4.21 less whatever tax you will pay on the dividend..I'm going to ride it out to the end just a question of personal attitude. I've done well out of holding friends life/resolution so far so why sell now? As far as I know the dividend is payable to holders at the date of acquisition but the RNS is so verbose its hard to read.
highsnlows
22 Jan 2015
Re: Approaching 400 again Hello you knowledgeable people.The sp is now at 408 as I write (so is, at the mo, worth more than the strike price of 394). Getting quite nervy about this high sp.Question - will there be an ex div day for the announced divy of 24.1p to us FLG owners? If not what date will be the assumed entitlement day - will it be the acquisition completion day or some other? Many thanks HnL
