Mr Kretinsky's offer to buy all staff shares.

[BenacreNick]

I've got two questions really, if you can help or advise me.

1) When are we likely to receive the offer letter, presumably this week ?

2) The majority of my share holding fall into the "locked in" or "condional" category.
Does DK's offer incude to buy all of these shares as well, or will he have to abide by the rules just like everyone else ?

Many thanks.

[RobertT]

I've got two questions really, if you can help or advise me.

1) When are we likely to receive the offer letter, presumably this week ?

I've already had my letter off Equiniti concerning my shares held in the RM nominee account.

2) The majority of my share holding fall into the "locked in" or "condional" category.
Does DK's offer incude to buy all of these shares as well, or will he have to abide by the rules just like everyone else

The P&M information booklet suggests if the company is sold, shares can be taken out of the SIP free from income tax and NIC's. So yes, he's got his eye on all RM shares.

[BenacreNick]

OK great, many thanks as always RobertT.

[ram69]

What will happen to our shares if we refuse to sell them ?

[BenacreNick]

You keep hold of them as normal.

However if DK hits high numbers (possibly 90%) or something similar, he can "sweep up and buy" all of the remaining shares anyway.

I think its called a "squeeze out option"

[RobertT]

You keep hold of them as normal.

Not exactly as normal.

If the company de-lists from the stock market, which it probably will, any remaining shares become harder to sell and there's no guarantee of any dividends.

https://www.investopedia.com/terms/d/delisting.asp

[clashcityrocker]

For those that can't be bothered to read the link provided by Robert.

What Should I Do After Delisting?
If you still hold shares after they’ve been delisted, your next step depends a lot on what you’re invested in, how convinced you are about its prospects, and whether you have the stomach to deal with the murkier, less transparent alternative exchanges.

You can still sell the shares, but the conditions to do so will now be generally less favorable. Volume thins out when you leave a major exchange. With OTC transactions, there are fewer buyers and sellers, meaning wider bid-ask spreads and getting less than the going rate. In some cases, you may only be able to trade the shares by appointment.

WARNING: In most cases, it’s best to sell stock before it delists.

Can I Sell My Shares After a Delisting?
If you still hold shares after they are delisted, you can sell them—just not on the exchange on which they traded before. Stock exchanges are very advantageous for buying and selling shares. When they delist and trade over the counter (OTC), selling shares and getting a reasonable price for them becomes much harder.

[wdo1256]

Less hope that DK doesn't get his 75%.

I'm not selling and voting against the board at the AGM who are useless.

However, if he does get the 75%, it will put Labour in an interesting position, Say he gets 80%, this would mean that there will be a large number of Royal Mail Staff and members of the public with shares that hold nominal value, would Labour let these people get screwed by a foreign investment group ?

They have the last say in this matter

[robking]

If the deal is approved by the Government and Ofcom he will easily get 75% which will mean he can take the the company off of the stockmarket and shortly after over 90% which will mean he can compulsorily purchase any remaining shares and cancel them, this requires a court order but it is a formality.
At every stage he will still have to pay the same £3.60 for every share, so anyone holding out will eventually find that their shares have disappeared from the stock exchange listings and they won't be able to sell them. They will have to apply to Kretinsky's office to get their money.

[wdo1256]

If the deal is approved by the Government and Ofcom he will easily get 75% which will mean he can take the the company off of the stockmarket and shortly after over 90% which will mean he can compulsorily purchase any remaining shares and cancel them, this requires a court order but it is a formality.
At every stage he will still have to pay the same £3.60 for every share, so anyone holding out will eventually find that their shares have disappeared from the stock exchange listings and they won't be able to sell them. They will have to apply to Kretinsky's office to get their money.

What is the time line for DK, when do the Government / Ofcom get involved, is it before or after the results are announced ?

[Jefferson Starfish]

If the deal is approved by the Government and Ofcom he will easily get 75% which will mean he can take the the company off of the stockmarket and shortly after over 90% which will mean he can compulsorily purchase any remaining shares and cancel them, this requires a court order but it is a formality.
At every stage he will still have to pay the same £3.60 for every share, so anyone holding out will eventually find that their shares have disappeared from the stock exchange listings and they won't be able to sell them. They will have to apply to Kretinsky's office to get their money.

What is the time line for DK, when do the Government / Ofcom get involved, is it before or after the results are announced ?

It's obviously after.
They only get involved if it's a yes vote.

[robking]

The takeover timetable is here.

https://idsoffer.shareview.info/SIP.htm

[Mike G]

I've read elsewhere that if you don't agree to sell them to him he doesn't necessarily need to compulsory purchase your shares and you could effectively be left holding worthless, unsellable shares in a de-listed company?

[Pasqually66]

Excellent reply.

For those that can't be bothered to read the link provided by Robert.

What Should I Do After Delisting?
If you still hold shares after they’ve been delisted, your next step depends a lot on what you’re invested in, how convinced you are about its prospects, and whether you have the stomach to deal with the murkier, less transparent alternative exchanges.

You can still sell the shares, but the conditions to do so will now be generally less favorable. Volume thins out when you leave a major exchange. With OTC transactions, there are fewer buyers and sellers, meaning wider bid-ask spreads and getting less than the going rate. In some cases, you may only be able to trade the shares by appointment.

WARNING: In most cases, it’s best to sell stock before it delists.

Can I Sell My Shares After a Delisting?
If you still hold shares after they are delisted, you can sell them—just not on the exchange on which they traded before. Stock exchanges are very advantageous for buying and selling shares. When they delist and trade over the counter (OTC), selling shares and getting a reasonable price for them becomes much harder.