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Mondi - Anglo sens 2-7-2007

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john_1
Super Contributor
I have gone back and hd a look through all the sens relating to the mondi delisting. and I found this little gem...The demerger ocoured as a dividend and as such all installment owners of anglos are infact entittled to the full value of the mondi shares. Not a portion there of. As all dividends are to be payed to instalment houlders..... hear is the sens ................................................................at 12.30 a.m. on 2 July 2007 Anglo American paid a dividend in specie (the -Demerger Dividend-) which resulted in the Mondi business being transferred to MPLC and MPLC allotting and issuing ordinary shares (""MPLC Ordinary Shares"") to holders of existing Anglo American ordinary shares of US$0.50 each (""Anglo American Ordinary Shares"") at the record time (12.01 a.m. on 2 July 2007 (the -Record Time-)) for the Demerger on a pro rata basis of one MPLC Ordinary Share for every Anglo American Ordinary Share held. It is expected that at 8.00 a.m. London time (9.00 a.m. South African time) the following will occur: - the proposed consolidation of Anglo American Ordinary Shares (the -Anglo American Share Consolidation-) described in the circular to holders of Anglo American Ordinary Shares dated 1 June 2007 (the ""Circular"") and the prospectus for the Mondi Group dated 1 June 2007 (the ""Prospectus"") and admission to the Official List of the UKLA and to trading on the London Stock Exchange and the JSE of the new ordinary shares in Anglo American arising from the Anglo American Share Consolidation will become effective with the result that for every 100 existing Anglo American Ordinary Shares held at the Record Time, shareholders will receive 91 new Anglo American ordinary shares of 5486/91 US cents each (the -New Anglo American Ordinary Shares-). - conditional dealings in MPLC Ordinary Shares on the London Stock Exchange and the JSE will commence and conditional dealings in ordinary shares in MLTD (-MLTD Ordinary Shares-) on the JSE will commence.
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60 REPLIES 60
john_1
Super Contributor
the sens dated 29-06-2007 is even clearer that the mondi shares are in effect a dividend and as such the right of all instalment houlders..............................................................As described in the Circular and the Prospectus, following the passing of the resolutions at the Extraordinary General Meeting of Anglo American held on 25 June 2007, it is expected that the dividend in specie proposed to be paid to the holders of Anglo American Ordinary Shares at the Record Time to effect the distribution to shareholders of MPLC Ordinary Shares as the first step in the Demerger, and which is more fully described in the Circular and the Prospectus (the -Demerger Dividend-), will be paid at 12.30 a.m. on 2 July 2007. Following payment of the Demerger Dividend, and admission to the Official List of the UKLA and to trading on the London Stock Exchange and the JSE of the new ordinary shares in Anglo American which will arise from the Anglo American Share Consolidation, which is expected to be at 8.00 a.m. (London time) on 2 July 2007, the Anglo American Share Consolidation will become effective with the result that for every 100 existing Anglo American Ordinary Shares held at the Record Time, shareholders will receive 91 new Anglo American ordinary shares of 5486/91 US cents each (the -New Anglo American Ordinary Shares-).
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SimonPB
Valued Contributor
john, how many mondis did you get?
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Brazen
Super Contributor
john, v interesting. So you reckon we should get the entire share, not an instalment. Standard Bank told me yesterday I'd only get an instalment on Mondi?
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Brazen
Super Contributor
And john, if you're right you're a complete genius, and the handsomest man on the planet. You'll be a hero to millions!
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JohnnyCash
Super Contributor
This is exactly the problem with Barlo/PPC as well. Because they are going to give a share distribution and not cash the issuers automatically think they should keep the shares and make new business by issuing a new instalment. The fact is the TERMS of all instalments are that ALL distributions goes to the holder. The fact that there's a final instalment is irrelevant cause the current price of the INstalment will be adjusted! In a previous thread Simon alluded to what may cause the problem! The Issuer in fact do not hold the underlying but hold SSFs on the underlying! Because of that the Future's market wont channel the physical shares so the Issuer do not get the shares! A bit worrying cause that's not what the TERMs allude to!
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Brazen
Super Contributor
But is that our problem as holders of the instalment JC? We bought the instalment with the proviso that we got the full dividend. If this is legalley a dividend I want it.
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SimonPB
Valued Contributor
OK I bin slow but I understand. By giving instalments from unbundling (divs whatever), you only get half the value of the spin off. hmmm, let me chat to the gents over the other side.
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SimonPB
Valued Contributor
John, the people on the other side are checking their numbers, but I agree with your logic and think they are wrong.
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Brazen
Super Contributor
Just phoned Investec - they're paying out full Mondi's to their instalment holders. Not instalments. They read it as a divi payout. I don't think Standard have a leg to stand on. Well done john.
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Brazen
Super Contributor
And to really prove you're a hero I know you don't even have the Standard issue, you hold Investec instalments. You made money for us STA holders at no benifit to yourself. What a prince!
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john_1
Super Contributor
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Brazen
Super Contributor
And I'd really like to make a post containing the words 'bankers', 'bloody crooks', and 'shot at dawn after being horribly tortured'. But I won't.
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CE
Super Contributor
B, if I have to share my feeling towards banks on this forum, I will most propably spend the next 2 years in court. So I also will not....
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Brazen
Super Contributor
When I think they would have taken half MY shares, made me buy back MY OWN shares at maturity, and still charged me brokerage. Of course they'll say it was a mistake, funny how these banker mistakes are NEVER in favour of clients and ALWAYS in favour of bankers. Oh God, I think I starting to rant and froth at the mouth. . .
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john_1
Super Contributor
Truth is simon this is a special div and the market has miss priced it.. so as an installment houlder we benifit just as if telkom had payed a R9 div and on going ex div the price had remained stable. it is the risk reward that a instalment share houlder takes. And I see no leg that sfm has to stand on to issue a instalment on mondi as this would be like only paying a 3rd of a div. and then charginf interest on the diffrence.
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john_1
Super Contributor
I find champaine helps at these moments.
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CE
Super Contributor
So true B, my doughter sold their house recently after they had it for 2 years. Apart from the fact that they paid 99,99999% of their installment towards interest, they wanted to charge them a penalty of R20k for selling "to soon" !!!!
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Brazen
Super Contributor
Yip, I know. And not only that, they'll refund that 'fee' if you sign up with them again within 6 months. Pure extortion.
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JohnnyCash
Super Contributor
Jeez thanks Simon. That's what a week or so's thread around BAW was all about. Neva mind as Im sure it would have caught on! Thanks for giving us a voice on da other side! Most helpful!
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