Jardine Lloyd Thompson - yet more corporate action

[Davidsb]

https://www.investegate.co.uk/marsh---3 ... 5500Z5475/

So, more enforced tinkering - so much for holding shares 'forever'.

Still, £19.15 per share does seem like a decent price - or I may possibly choose to sell in the market, rather than waiting for the deal to complete.

The RNS says "The Acquisition is currently expected to close during Spring 2019, subject to receipt of the relevant competition clearances and regulatory approvals." So, cash now, or cash later?

[OLTB]

" So, cash now, or cash later?

Hi Davidsb

As a new HYPer, I am going through my first corporate action similar to this with Sky. I have held on for the 'market trade' to happen and am glad I held on. The dividends have more or less stopped (there have been a few since the initial takeover announcement by Fox), but I have benefitted from a capital perspective, as the offer price has increased subsequently.

Holding on has therefore been beneficial, but I am not drawing on my dividends as I'm still working so I don't need them - it may be a different decision if I were relying on dividends for my income.

Cheers, OLTB.

[Lootman]

So, more enforced tinkering - so much for holding shares 'forever'.

JLT has a dividend yield of 2.4% so one could argue that, with today's 30% uplift in share price on the news, you just got 12 years worth of dividends in a day.

And there are plenty of alternatives in that space to reinvest in. You are basically being given 130% of that portfolio position's former value to reinvest in another finance share with a higher dividend.

I'm just glad I did a bed-and-ISA of this share last year, as involuntary corporate actions like this can give you a nasty CGT surprise, especially if they come at the end of a tax year when you have already used up your annual allowance.

Take the money and run . .

[kempiejon]

...
I'm just glad I did a bed-and-ISA of this share last year, as involuntary corporate actions like this can give you a nasty CGT surprise, especially if they come at the end of a tax year when you have already used up your annual allowance.

Take the money and run . .

For this reason I hold on and do my CGT disposals at the end of the tax year, this hopefully means I 'm less likely to get caught out and it also frees a chunk of new unsheltered cash to add to the ISA come the new tax year. JLT was tinkered away on capital gains planning and yield increasing 3 years ago, they were an early purchases in my HYP in 2006 then again in 2008 at about 6% yield. I and sold out in 2015, they've not really been a high yielder since I sold.

[YeeWo]

On a TR basis JLT has been one of my better investments. Not sure whether to sell in the market or hold on, sold Sky far too soon and lost out. I had rather hoped JLT would of been “forever”, that’s clearly not the case. Swires sold out of Insurance in 1997, now Jardine today. Sad that I can no longer co-invest with respected China Hands in the Insurance sector in EMs. I hope this doesn’t result in too many City of London based jobs being lost!(?).

[Davidsb]

...Take the money and run . ....

Thanks for the advice, Lootman.

As the interim dividend is due on 3rd October, my instinctive reaction is to do nothing at the moment.

I have sold Ladbrokes Coral, GKN and UBM in the market, rather than waiting for the bid cash (or sometimes cash&shares mix), and may well go down that route again.