Right Issue

Friday, Nov 28 2008 by

Check this out - is this the worst right issue response of all time? 0.24%?

The Royal Bank of Scotland Group plc (”RBS”) - Result of Placing and Open Offer - RBS today announces that, as at 11:00am on 25 November 2008, being the latest date for receipt of valid subscriptions, it had received valid acceptances in respect of 55,977,458 new RBS ordinary shares,representing approximately 0.24 per cent of the total number of new RBS ordinary shares offered to shareholders pursuant to the 18 for 13 Placing and Open Offer announced by RBS on 13 October 2008 (the “Open Offer”). In accordance with the arrangements set out in Part III of the Placing and Open Offer prospectus dated 4 November 2008 (the “Prospectus”), at closing HM Treasury will take up the remaining 22,853,798,818 new RBS ordinary shares, for which valid acceptances were not received. As a result, HM Treasury will own approximately 57.9 per cent. of the enlarged issued ordinary share capital of RBS.

 


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The Royal Bank of Scotland Group plc (RBSG) is a holding company. The Company operates through its banking and financial services subsidiaries, including The Royal Bank of Scotland plc (RBS) and National Westminster Bank Plc (NatWest). The Company’s operations are conducted through various divisions, including UK Retail, UK Corporate, Wealth, International Banking, Ulster Bank, and US Retail & Commercial, Markets and Non-Core Division. UK Retail offers a range of banking products and related financial services to the personal market. UK Corporate is a provider of banking, finance and risk management services. The Wealth division provides private banking and investment services. International Banking serves the companies with a client proposition. Ulster Bank is a retail and commercial bank. The US Retail & Commercial division provides financial services. Markets is an origination, sales and trading business. The Non-Core Division manages various assets of the Company. more »

Share Price (Full)
343.1p
Change
-7.2  -2.1%
P/E (fwd)
11.6
Yield (fwd)
0.9
Mkt Cap (£m)
39,346



  Is Royal Bank of Scotland fundamentally strong or weak? Find out More »


4 Posts on this Thread show/hide all

Stocktaculous 28th Nov '08 1 of 4
1

This was inevitable, since the new shares were more expensive than the price of the existing shares on the stock market. I am surprised they even got 0.24%!

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Stocktaculous 28th Nov '08 2 of 4

Interestingly, Citigroup put RBS price target at 100p and has rated the shares a buy in the medium term.

On reflection, I agree, now that the messy rights issue is out of the way. Sure, nationalisation means that there will probably be interference from a non-commercial government agenda. But at least the liquidity problems are solved, and it's still a great business in many ways, especially now that they will pull back from toppy credit bubble lending.

Sentiment updated!

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Stocktaculous 2nd Dec '08 3 of 4
1

Merrills have come up with a similar view - http://www.stockopedia.com/news/comments/RBS/37

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Betasurfer 4th Jan '10 4 of 4

RBS shares weirdly up 10% today despite confirming that a deal to sell its Pakistani business fell through. Bad news is good news? Go figure.

http://www.ft.com/cms/s/0/aee0f6aa-f904-11de-80dc-00144feab49a.html

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