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ROLLSW ROYCE


CHRISEV

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46 minutes ago, CHRISEV said:

Can someone explain what has happened with rolls roycwe

The reason for the change is Rolls-Royce has announced a rights issue. The ex date is today. If you held shares from yesterday through to the open this morning you will be entitled to the following. 

Rolls-Royce announces £2 billion rights issue

The rights issue trading period for Rolls-Royce shares is now active, giving you the chance to buy new shares for the reduced price of 32p until the deadline date – 4pm (UK time) on 6 November 2020. You’ll be able to subscribe to ten new shares for every three you currently hold.

This offer has implications if you have either long or short positions – learn how to get your preferred outcome below.

How this affects your entitlement:

You have a number of options depending on your original trade.

If you have a long position, you can:

■Take up the rights issue by replying to this email (corporate.actions@ig.com) before the deadline, quoting your account ID and stating your wish to take up the rights.

■Do nothing and let the rights lapse – this is IG’s default option for clients

■Trade out of the rights by closing your position in the platform by 6 November 2020 – 4pm (UK time)

If you have a short position, you can:

■Buy the rights back by closing your short position, before 6 November 2020 – 4pm (UK time), in the platform during the rights trading period

■Take no action. This will risk your rights being taken up automatically, depending on the result of the offer. This means that you may have a new short position opened on your account at the subscription price under the terms of the offer

You’ll need to make your decision by 4pm (UK time) on 6 November 2020 – otherwise your entitlement will lapse by default. If you hold rights on multiple accounts, please reply to this email and state the relevant account IDs on which you wish to take up the rights. You'll also need to do this if your ISA is at the maximum allowance – please confirm that you'd like the new shares transferred to your share dealing account.

If you hold shares in a share dealing or ISA account, please ensure the relevant one is adequately funded before this deadline date and maintained beyond 12 November 2020 – when the new shares will be booked on your account – or this election will lapse by default.

All positions with guaranteed stops will be closed at the final price on the day before the ex-date. We’ll open a new position to automatically take up the above offer at an adjusted level and size. The monetary risk of the trade will remain the same. We’ll also remove all working orders on Rolls-Royce before the market opens on the ex-date.

Please be aware that the information above could change. You can find quick answers to any questions about this rights issue in the FAQs.

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Did anyone have a short which they were informed that had to buy to close? The dilution legally happens on November 6th not October. The trade was a win due to market reation and not anything legal nature that effects a binary product. 

 

 

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Edited by findgriff
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