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TUI - Rights Shares


Sudo81

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Hello, please could some one advise me?

This morning following the tui rights issue - I can see on my IG trading account that in my positions, that a value/number of separate additional tui shares is there with a side tag of -RIGHTS.

can someone explain to me if I am able to sell these, although its is my understanding that you would normally purchase or accept the rights issue to take that position at that price. 

If so, how would I accept the rights issue and add these to my position. I appear to already be holding them but that doesn't make sense in my mind. 
 

Is anyone able to offer me some advice? 

 

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You need to email corporate actions at IG and inform them that you wish to take up your rights issue. You will of course need to have sufficient funds in your account to cover the cost at 1.07 euro per share. It would appear by relatively low drop in TUI share price that the rights issue price is very reasonable however you should do your own research.

Please see email I received ftom IG re this issue;

 


TUI AG recently announced plans to raise cash from existing investors through a rights issue trading period, which will come into effect on 12 January 2021.

This will give you the chance to buy new shares for the reduced price of €1.07 until our deadline date – (TBD). You'll receive an email clarifying this date within the next five working days. You’ll be able to subscribe to 25 new shares for every 29 you currently hold.

This offer has implications if you have either long or short positions on the ex-date of 8 January 2021 – learn how to get your preferred outcome below.
 

 

 



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

If you have a long rights position, you can:
 

Take up the rights issue by replying to this email (corporate.actions@ig.com) before the IG deadline, quoting your account ID and stating your wish to take up the rights
Take no action and let the rights lapse - this is IG’s default option for clients
Trade out of the rights by closing your position on the online platform by our deadline (TBC)


If you have a short rights position, you can:
 

Buy the rights back by closing your short position, before our deadline (TBC), on the online 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 our deadline (TBC) – 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 with settled cash before the IG deadline date and maintained beyond 29 January 2021 – when the new shares will be expected to 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 TUI AG before the market opens on the ex-date.

 

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i don't understand the price quoted on the rights issue. the current share price is about 355 but the rights issue shows as 210 with cost per share for take up at about 97.5.  I thought perhaps its showing as the difference  between todays price and the offer price  which makes some sense but doesn't quite tally up. By my maths its about 40 odd light.

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Hi - what happens once you've emailed corporate confirming you would like to take up the TUI rights issue?  

How do they know how many shares you want and how do you then acquire them?

Cheers  

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