EasyJet Rights Issue

[DeuceBiggalow]

Afternoon all,

I was hoping someone here could clarify some conflicting information I am receiving about the EasyJet rights issue. It was my understanding that if you held a position in EasyJet as at 6pm Wednesday 8th September that you would be able to take part in the rights issue. However I have just received this response from IG support:

Quote

If you hold a Easyjet position on the close of business 10/09/21 then we will book the new rights on your account on the Ex-Date 13/09/21.

This has me worried as I offloaded some of my shares in easyjet yesterday - under the assumption that the timeline provided on EasyJet's corporate site was correct.

Record Date for entitlements under the Rights Issue 6:00 p.m. on Wednesday 8 September 2021

Thanks in advance

[AndaIG]

Hi @DeuceBiggalow

Thanks for the query

Please note that the ex date for the event is 13/09/2021. You would need to hold the shares going into the trading day on Monday to be entitled to the rights. The benefit of the rights remain with the seller selling his shares on or post the ex-rights date. The date of record is the cut-off date where you would need to appear in the shareholders list, in order to determine eligibility to participate in the right issue. 

All the best

Anda

[DeuceBiggalow]

Hi @AndaIG

Can I check then. The shares that I owned on Wednesday do not matter with regard to the rights issue. Only the shares that I hold going into trading on Monday will be entitled to the rights regardless on when they were purchased?

Thanks

[AndaIG]

Hi @DeuceBiggalow

The shares that you held on Wednesday make you eligible to participate. However what determines how many rights you are entitled to will be the shares that you hold going into Monday. What you held on Wednesday is irrelevant in this regard. 

Thanks 

Anda 

[DeuceBiggalow]

Appreciate your help @AndaIG. Sorry for the bother then but this is a bit new to me can you confirm my understanding...

At Close on Wednesday I held 1000 shares
During Trading Thursday I sold 1000 shares
During Trading Friday I bought 1030 shares (due to the price fall I picked up more shares)

From your posts I believe that as I held shares on Wednesday I am entitled to participate in the rights share and the amount of 'rights' I am entitled to is 1030 because that is what I currently hold (and will not be selling)

Thanks again for your help

[AndaIG]

Hi @DeuceBiggalow

Yes, that is correct. Your entitlement will be based on what you hold at the close of trading today. Remember the terms are 31 for every 47 that you hold. So that would be 679 rights. (1030/47)*31 

Thanks

Anda

[DeuceBiggalow]

Thanks a lot. It's a crazy system but I can understand it better now!

[keyman22]

Thanks for this information - very helpful. What will happen on Monday - how will the rights issue be offered to eligible shareholders please? Will we receive an email then or do we need to deposit funds ahead of the time for example? Many thanks!

[kais]

Hello Admin. 

I am kind a new to this.  Can you please explain how would I actually exercise my "rights to  acquire 

 

31 for every 47 that I have. Do i need to call in and buy inform you guys  or will I automatically get these added to my shares. Will someone at the help desk be able to guide ( what times open ?)  or can I have private chat to explore my best options. 

Thanks

 

 

[AndaIG]

Hi @keyman22 @kais

Thanks for the question

You would have noticed that the rights have now been booked onto your account. You will be sent an email from our corporate actions team providing all the details relating to the rights issue. To exercise your rights you simply need to reply to the email with your instruction. 

Thanks

Anda

[Guest Lyn]

Good morning. Pls. Could anyone tell me if I receive payment if I do not take up the rights issue.

[AndaIG]

Hi @Lyn

Thanks for the query

Yes you can sell your rights as they are tradeable, for more information please visit our FAQ blog from the following link

 

Thanks 

Anda

[Guest andrewuk]

Can I participate in the rights issue if I hold my EasyJet shares in a Stocks and Shares ISA and have already used up my £20k S&S ISA allowance for this financial year? 

[AndaIG]

36 minutes ago, Guest andrewuk said:

Can I participate in the rights issue if I hold my EasyJet shares in a Stocks and Shares ISA and have already used up my £20k S&S ISA allowance for this financial year? 

Hi Andrew

Please refer to point 5 in the FAQ blog above

Regards

Anda