TX2
21 Jan 2015
Re: Approaching 400 again Yes we are now basically holding proxy Aviva shares & I agree with you that prospects/market sentiment seems favourable for Aviva,therefore a reasonable hold.The final dividend,although nice to have, is basically in the price.We will not qualify for the Aviva final divi & no doubt if we do the maths we will find the relative price for FLG & Aviva presently compensates for the the different levels of final divi at the two companies.
Windlesham Don
21 Jan 2015
Re: Approaching 400 again Remember the bumper 24.1p dividend that has been promised to holders. In the current low yield environment that is not to be sniffed at. A friend of mine and long term AV shareholder is hopeful that in the few months after the merger AV will hit 550p, so in my view there are still compelling reasons to hold.As ever, DYOR though.
highsnlows
20 Jan 2015
Approaching 400 again Where do you knowledgeable people see the share price going once the acquisition goes through?As we approach 400p again, my nerves are starting to twitch. I'm undecided as to take my profit and wait on the sidelines or tough it out until the acquisition is complete.The old adage is Buy on the rumour, Sell on the fact.
cashpharma
13 Jan 2015
friends life The share that just keeps on giving!
Roger G Cam
01 Jan 2015
Re: Proposed time scale for merger There was a letter from FL ro Shareholders. Itsprobably on the FL Group Website in the Shareholder section.Exepect a communication second half of January - with details of the acquisition. Not sure whether the vote will be subsequent but expect the EGMs to agree it by March. Completion 2Q.
Medway Man
29 Dec 2014
Proposed time scale for merger Hi thereBefore Christmas, I saw somewhere, whether on this site or wherever, a anticipated time scale of the proposed merger assuming court hearings etc in Guernsey prior to such and such date.Does anyone have similar article or can point me in the right direction of perhaps where I saw it?It's really bugging me, as to where I read the item!
Warthog4
09 Dec 2014
Re: Divis and growth Only 13 of the Top 100 companies pay out more than 100% of EPS in divis:FLG is number 11 with a ratio of 212. (Sainsbury's tops the list with a ratio of 1331 !!)
onlookout
03 Dec 2014
Re: Divis and growth Pharma, your comments sound reasonable, in light of
1) Aviva Divi being low(2) FL's dividend coverage has been questionable for some time (i.e. it looks like its being propped up to satisfy shareholders to the detriment of an ongoing businessLooks like you've done well, but time to move on.
PharmaD
03 Dec 2014
Divis and growth Being retired, I've got 12000 FLG shares for the divi. These were bought for £36615.39 and I am currently sitting on a profit of £9000 which I don't need to crystallise, and together with divis of £2500 this has proven to be a nice little earner.If I accept the Aviva shares I get 8880. These will have effectively cost me £36615.39. If I wish to make my £9000 profit Aviva shares need to be at 514 before I sell them. However, the new interim 24.1p divi announced yesterday gives me £2892 but I would have got £1690 from FLG anyway. If I continue to hold the 8880 Aviva shares, I get an annual divi (using last 2 divi payout figures: 15p) of £1332. So to match current FLG divis this needs to increase to around 30p or to put it another way, the £2892 is an extra £1200 which gives me the £2500 for next year plus any increase in the Aviva divi. But after that Aviva divis have got to grow some to match FLG.So, assuming my calculations are about right, in the short term it doesn't matter if I hold or sell unless I move the money to another high divi payer (GLIF, CLIG, JIL .. even GSK) or I need the cash. On balance it looks to me as though long term, Aviva will grow as will the divis. However, for those looking for better income (never guaranteed of course), my guess is that it would be better to sell and reinvest elsewhere.Any sound, sensible comments, thoughts would be welcome.As always DYOR and GLA.
Warthog4
02 Dec 2014
Re: Strong Hold I didn't read far enough.Extract from page 23 of the announcement below:- “12.6 Indicative timing The timing of implementation of the Proposed Acquisition will be dependent upon a number of factors including availability of the Guernsey Court and receipt of regulatory approvals. However, subject to these factors, the indicative timing of the transaction is currently expected to be as follows:· second half of January 2015 – publication of the Aviva Prospectus and posting of the Scheme Document and Aviva Class 1 Circular;· March 2015 – General Meeting, Guernsey Court Meeting and Friends Life General Meetings; and· second quarter of 2015 – Scheme becomes Effective.”It is at the General Meetings that the shareholder vote on the proposed offer. The deal will complete when the Scheme becomes Effective.
Comeuppance
02 Dec 2014
Re: Strong Hold There is a strike date- 20th November. At the prices then realised, FLG shares will be worth 394p and 0.74 of Aviva shares. Should Aviva shares rise then you will get more for your money- worth holding and accepting the swap, unless you need the cash now, in which case sell on the market, but you'll lose a little.
TX2
02 Dec 2014
Re: Strong Hold I don't think anyone is an expert!Basically I am holding perhaps it would be a different story if elsewhere the market were full of bargain shares.Aviva may offer better capital growth albeit paid for by lower income but I have not made a final decision.
Warthog4
02 Dec 2014
Re: Strong Hold Having read and re-read the Announcement I'm still a tad confused-no doubt one of you experts out there will enlighten me?This seems to be a moving feast in the absence of a Strike Date.As I write Aviva stands at around £5.08p, 0.74 of which equates to £3.76 but FLG are standing at £3.86.Will the Strike Date be crystallised as and when the deal receives a decision from the shareholders?. At present if Aviva takes a dive then the premium to the FLG shareholders will diminish also making it less attractive? There is of course the added attraction of the 24p dividend, equivalent to the Interim and Final all at one go.
oldjoe1
25 Nov 2014
Re: Strong Hold Synergies from Aviva-Friends Life deal could be 'substantial', says The Share Centre24 November 2014 16
4The proposed tie-up between insurance groups Aviva and Friends Life Group could create "substantial synergies", according to The Share Centre, details of which still remain unknown.The companies announced after the close on Friday that they had agreed on terms for a possible all-share combination. Friends Life shareholders would get 0.74 Aviva shares for each Friends Life share they own, valuing Friends Life at 398.9p per share or £5.6bn.Sheridan Admans, investment research manager at The Share Centre, said: "Should the deal happen analysts believe synergies would be substantial, with Aviva's balance sheet benefiting as would its pensions and protection operations. Friends Life investors should benefit from improved growth prospects."However, she warned that the merger is still "not a done deal"."Friends Life investors may push for a higher premium or other interested parties may show their hand, however the latter is assumed to be unlikely given the size of the deal and the implication that may pose."Due to the merger activity, The Share Centre has downgraded its rating on Aviva to 'hold' until more details are released, but said that any weakness in the share price might by a good entry point for potential investors given the positive long-term outlook.Friends Life is also rated a 'hold'.
Proverbs 26 vs 5
24 Nov 2014
Re: High dividend replacement I've got GSK on 6% and VOD on 5.6%
