Share Dealing

British Energy Shares

Hello,
Last week I like others recieved a dividend from B E.
It wasn't much but then since re-structure iIdont have many shares.
The divi was on the few shares I hold and not the "warrents" I got after re-structure.
Doe anyone know if i should have got a divi' on the warrents?
What exactly are Warrents?
Can I //Should i convert them to shares?
I hope someone can suggest what to do.
Many thanks in anticipation.
Chris

ceejay123 Sat 05/04/08 19:22

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BigMac
Wed 09/04/08
15:23

You DO NOT get a dividend on a warrant. A warrant is "a form of share that gives the bearer the right to buy a particular investment at a fixed price in the future. Warrants are listed on the stock market and can be bought or sold at any time before their expiry date."

The following information comes from the British Energy website's FAQ section:

What are Warrants?
Warrants entitle you to subscribe for new shares at a price of 98 pence per new share. Shareholders may exercise the warrants and subscribe for new shares at any time in the five year period after the warrants were issued on 14 January 2005.

How do I exercise my Warrants?
To exercise your warrants you must complete the form and send your warrant certificate, completed form and proceeds for execution to the registrars as instructed. It may take up to four weeks for your warrants to be converted.

British Energy Group shares (ticker: BGY) are currently trading at just under 700p.

So, you could exercise your warrants at 98p for shares worth just under £7.00, meaning you would 'gain' £6.00 on paper immediately. If you then sold the shares you would realise that gain. [Excludes dealing costs.]

On the website there is also a calculator to work out what your warrants are worth, because you can also sell/buy the warrants.

Hope that helps you decide what to do.

ceejay123
Wed 09/04/08
18:08

Question Author

Thank you
Chris

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