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Mercantile MRC Trust - Down by 90%
David90
Posted: 26 May 2018 07:33:16(UTC)
#1

Joined: 26/05/2018(UTC)
Posts: 2

Thanks: 1 times
Hi,

Mercantile MRC trust is down by nearly 90% - does anyone know what's happening here?

I could not find much info about this. Would appreciate if anyone can share their thoughts?

David
John xyz
Posted: 29 May 2018 14:28:22(UTC)
#2

Joined: 18/01/2015(UTC)
Posts: 3

Was thanked: 1 time(s) in 1 post(s)
Share Split

As a consequence of the Company's strong performance, the share price has risen sharply in recent years. Indeed, over the last ten years, it has more than doubled. Whilst this is excellent for our existing shareholders, the Board believes that the high share price may be unhelpful for those investing smaller amounts, monthly savers and dividend re-investment programmes and therefore it is proposing to sub-divide the shares on a 10 for 1 basis. This is known as a 'share split'. Following the share split each shareholder will hold ten new ordinary shares for each share held immediately prior to the share split. We hope that sub-dividing the Company's ordinary shares will make buying the shares more attractive to new investors and increase market liquidity. I would like to reassure existing shareholders that the splitting of the shares will not affect the overall value of their holdings in the Company as the reduction in the price per share will be offset by a commensurate increase in the number of shares they hold. By way of example, taking the price as at 31st January 2018 of 2,150.0p per share, following the sub-division each holder of one ordinary share would receive ten new shares which would be priced at 215.0p per share immediately after the share split. Shareholders will have the opportunity to vote on this proposal at the forthcoming AGM and more details are set

Same thing happened at EAT
1 user thanked John xyz for this post.
David90 on 30/05/2018(UTC)
David90
Posted: 30 May 2018 19:40:26(UTC)
#3

Joined: 26/05/2018(UTC)
Posts: 2

Thanks: 1 times
John xyz;63080 wrote:
Share Split

As a consequence of the Company's strong performance, the share price has risen sharply in recent years. Indeed, over the last ten years, it has more than doubled. Whilst this is excellent for our existing shareholders, the Board believes that the high share price may be unhelpful for those investing smaller amounts, monthly savers and dividend re-investment programmes and therefore it is proposing to sub-divide the shares on a 10 for 1 basis. This is known as a 'share split'. Following the share split each shareholder will hold ten new ordinary shares for each share held immediately prior to the share split. We hope that sub-dividing the Company's ordinary shares will make buying the shares more attractive to new investors and increase market liquidity. I would like to reassure existing shareholders that the splitting of the shares will not affect the overall value of their holdings in the Company as the reduction in the price per share will be offset by a commensurate increase in the number of shares they hold. By way of example, taking the price as at 31st January 2018 of 2,150.0p per share, following the sub-division each holder of one ordinary share would receive ten new shares which would be priced at 215.0p per share immediately after the share split. Shareholders will have the opportunity to vote on this proposal at the forthcoming AGM and more details are set

Same thing happened at EAT


Thanks John - very well written explanation and easy to understand.
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