(LLOY.L) Lloyds Banking Group PLC Buy/Sell

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Author	Son of a tiger View Profile \| Add to favourites \| Ignore
Date posted	2009-11-07 16:40
Subject	Re: Question View parent message
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My view is this. Assume sp is at £1.00 a share then shares in issue are 27.16 billion. R.I. is to raise £13.5 billion and that works out at 50p (roughly) per existing share. At a sp of 80p this works out at a requirement to stump up £2 for every 5 shares held. Assuming a 40% discount, this would price the RI shares at 48p. Thus to raise the £2 investors would have to be offered 4.167 shares in the RI for every existing 5 shares held (rounding this would work out at a 5 for 6 RI). Your existing shares, 20K, would qualify for 16666 shares at 48p would amount to £8000 approx. Your existing shares at 80p gives an asset value of £16000, thus a total of £24000 for 36666 shares giving an averaging down to 65.5p approx. I dont hold a degree in maths so my calculation may be bonkers but I dont care as I refill my glass with a single malt, Craggenmore if anyones interested, beautiful stuff.
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