National Grid
National Grid plc Rights Issue
The company announced on 20 May 2010 that they intend to raise additional capital by way of a rights issue.
Any shareholder who had an investment in the ordinary shares as of 08:00 on 26 May 2010 is entitled to apply for 2 additional shares for every 5 shares previously held at a rate of 335 pence per new share.
Following your agreement to certain disclaimers, you can access the scheme documentation through the company’s website at http://sites.cantos.com/national-grid/10/announcement-may2010/public/content/other/u08763_d%20Final_IM.pdf.
Please pay particular attention to the details of risks which can be found at pages 10 to 15.
Please note that the registrar’s deadline for the offer is stated as 11:00 on 11 June 2010, however, in order for all customer acceptances of the offer to be collated and reconciled, The Share Centre will have a deadline for customer responses by 14:00 on 9 June 2010.
Acceptance of the offer maybe made through your online account, by email to corpactions@share.co.uk, by posting the acceptance form to us or by fax to 01296 41 40 40.
Customer timetable of events
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| 26 May | The Share Centre contacts all customers holding National Grid Group shares First day of trading for nil paid rights shares |
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| 8 June | Last day of trading for nil paid rights shares from your account | |
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| 9 June | Last day for customers to respond to The Share Centre. 14:00 latest | |
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| 14 June | New shares received and added to customer accounts | |
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Our Advice team view
"Some analysts had suggested that a rights issue was a possibility; however they were caught out by the timing. The money is needed to help fund the Group’s plans to invest £22 billion in new sources of generation and much needed upgrades to the UK's energy system over the next five years. National Grid has been a long time favourite for income seekers and with a target of increasing the dividend by 8 pct until 2012 the attractions remain. We suggest investors certainly consider taking up their rights."
Graham Spooner, Investment Adviser, The Share Centre.
26 May 2010.
Investments, their value and income they provide can go down as well as up and you might not get back what you originally invested.
01296 41 40 41
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