Forum Archive Index - June 2002

["Malcolm Cameron" <malharcameron@hotmail.com>]

Snoopy telecom price at record date $5.15 DRIP shares issued at $4.9965 
discount as far as I know 3% price at end of week after record date $5.20


>From: "tennyson@caverock.net.nz" <tennyson@caverock.net.nz>
>Reply-To: sharechat@sharechat.co.nz
>To: sharechat@sharechat.co.nz
>Subject: Re: [sharechat] Dividend Reinvestment Plans  (was Re:WRI)
>Date: Mon, 24 Jun 2002 19:01:10 +0000
>
>Hi EK,
>
> >
> >
> >Most if not all DRIP's price the shares at the average or mean price
> >that the shares trade for the 5 days following the share being
> >ex-dividend. Hence the price paid is reasonably fair and accurate,
> >even more so if issued at a discount.
> >
> >EK
> >
> >
>
>Well I have to admit I am not in any DRIPs so I may be out of touch.
>Nevertheless I found the documentation on the RBD DRIP, that I didn't
>join.  It clearly says when deciding on the share price "C" to use
>for the basis of issuing new shares:
>
>"C is the weighted average sale price for a share calculated on all
>sales of shares of Restaurant Brands which took place on the New
>Zealand Stock exchange on the five trading days immediately preceding
>the record date.  If no sales of Shares occur during the five trading
>days preceding the Record date, then the average sale price shall be
>deemed to be the sale price for the share on the last sale of
>shares of Restaurant Brands which took place prior to such days as
>determined by the New Zealand Stock Exchange."
>
>For RBD at least, price of shares issued is based on the price
>*before* the shares went ex-dividend (the ramped up price) less a
>2.5% discount.
>
>I also found a Telecom DRIP statement and this clearly states:
>
>"your cash dividends are reinvested at the market prices being the
>weighted average of selling prices on the New Zealand Stock
>Exchange for the five business days immediately following the record
>date."
>
>I have to admit to being genuinely surprised by this, although I
>notice the size of the discount, if one exists is not mentioned
>specifically.  Do you have that information EK?
>
>I am curious now about the terms of other Dividend Reinvestment plans
>out there.  Is there anyone out there who have the documentation
>lying about that can tell us what a particular DRIP that you are
>invested in does?
>
>SNOOPY
>
>
>
>
>
>
>.
>---------------------------------
>Message sent by Snoopy
>e-mail  tennyson@caverock.net.nz
>on Pegasus Mail version 2.55
>----------------------------------
>"You can tell me I'm wrong twice,
>but that still only makes me wrong once."
>
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