The latest news and discussion on Royal Mail Shares.Please note the advise given in this forum is unofficial, please use the links we have for a more detailed response or see an independent financial adviser. All news and discussion on Daniel Kretinsky's full takeover of Royal Mail.
dvbuk55 wrote:Whohooo I'm rich I'm getting ready for the prawn sarnies and champers. and maybe a fruit salad
Pffffff Don't choke on it
Obviously you aren't comfortable with the nouveau riche, but no worries I'll still wave when I'm being chauffeured to Wembley but don't stand near any deep puddles
rjack wrote:I'm sure I read something about a maximum of £3000 worth of shares to be given to us
They can't put any financial limit on how much we get.
That will depend on the share price.
It is written into law(Postal Services Act 2011) that we get at least 10% of the company no matter its value.
2) Those arrangements must secure that if at any time the proportion of the company owned by the Crown is reduced to nil, the proportion of the company owned by or on behalf of the employee share scheme is at that time (or has before that time been) at least 10%.
What they could do is make us wait until they offload the last of the company but that's very unlikely and to be honest irrelevant since we can't touch them for 3-5 years by which time the company will be long off the governments hands.
Your employer can award you up to £3,000 worth of free shares in any tax year. A tax year runs from 6 April one year to 5 April the next.
It's possible if the share price maintains its elevated position that some of the full-timers allocation may have to be pushed back into the next tax year.
Legally that's not an issue because the Postal Services Act doesn't commit Royal Mail to issuing the 10% until they have disposed of the whole company.
It may mean waiting another 6 months until the full-timers can access the residue though.
Read the prospectus in detail guys and all the answers are there!
1 - Part-timers. Page 312 in the prospectus - there is the detail for number of employees.
Number of employees - 149437
Number of Full Time Equivalents (FTE) employees - 148777
So number of shares per Full Timer is 100000000 / 148777 = 672
Though it will actually be slightly more because a- somewhere in the prospectus it says that actually 100160000 shares are being allocated, the extra 160,000 being to allow for 'rounding up' of each individual's shares and b- the shares not taken up by the 368 opt outs. These two together add about 3 shares each.
HOWEVER, actual numbers will of course depend on the actual number of employees at the time of issue, and things such as the average number of hours worked by part-timers over the defined July to October period. But lets say 675 shares each for FTs.
2 - Whilst their initial value is £3.30 per share ie £2227.50, the value for tax purposes - the 'base line' - is based on the mid-point closing price on the stock exchange tomorrow (Tuesday 15 October). So if they were to close at £4.62 per share (the live price as I am typing this) then they would be 'worth' £3118.50.
AND because of this the SIP Tax rules would kick-in.
See page 402 of the prospectus - In essence the maximum value that can be issued to an employee in a single tax year is £3000. Currently the value for the shares is more than that, and this will be so unless the stock exchange price drops to around £4.44 each.
If the value of a Full Timer's shares is above £3000 the allocation for EVERYONE will be scaled back so that a FT's value is below that £3000 limit (so yes, PT's would also get less).
BUT the shares that are not then used are then allocated as soon as possible into the new tax year, 6 April 2014 (to those still in continuous employment).
My guess also is that the 3 year / 5 year rules for those shares would start at that later date, but that's speculation.
airwaves wrote:Read the prospectus in detail guys and all the answers are there!
1 - Part-timers. Page 312 in the prospectus - there is the detail for number of employees.
Number of employees - 149437
Number of Full Time Equivalents (FTE) employees - 148777
So number of shares per Full Timer is 100000000 / 148777 = 672
Though it will actually be slightly more because a- somewhere in the prospectus it says that actually 100160000 shares are being allocated, the extra 160,000 being to allow for 'rounding up' of each individual's shares and b- the shares not taken up by the 368 opt outs. These two together add about 3 shares each.
HOWEVER, actual numbers will of course depend on the actual number of employees at the time of issue, and things such as the average number of hours worked by part-timers over the defined July to October period. But lets say 675 shares each for FTs.
2 - Whilst their initial value is £3.30 per share ie £2227.50, the value for tax purposes - the 'base line' - is based on the mid-point closing price on the stock exchange tomorrow (Tuesday 15 October). So if they were to close at £4.62 per share (the live price as I am typing this) then they would be 'worth' £3118.50.
AND because of this the SIP Tax rules would kick-in.
See page 402 of the prospectus - In essence the maximum value that can be issued to an employee in a single tax year is £3000. Currently the value for the shares is more than that, and this will be so unless the stock exchange price drops to around £4.44 each.
If the value of a Full Timer's shares is above £3000 the allocation for EVERYONE will be scaled back so that a FT's value is below that £3000 limit (so yes, PT's would also get less).
BUT the shares that are not then used are then allocated as soon as possible into the new tax year, 6 April 2014 (to those still in continuous employment).
My guess also is that the 3 year / 5 year rules for those shares would start at that later date, but that's speculation.
I would agree with your last point. I'm pretty certain the handful of shares over the £3000limit value would start the 3-5 year clock ticking on 6 April. However, it may all be academic as there are bound to be a lot of sellers on the 15th Oct which may push the price back down below £4-44 which would make everything more straightforward.
Hmmm - once the shares were allocated to us, would any increase in value be irrelevant - or would we have to hand more back to keep the level below £3000 in value?. It seems that the whole principle of share ownership is futile if you are only allowed to hold them at a restricted value.
I'm getting ready for the prawn sarnies and champers.
and maybe a fruit salad
do I reply seriously, or.....
