Rights issue
Introduction
HBOS shareholders have approved plans to raise £4.0bn of additional capital
through a rights issue.
The rights issue will grant qualifying shareholders the right to buy two new ordinary shares for every five existing ordinary shares they hold. The new shares will be offered at the discounted price of 275p per share.
Shareholders should carefully read the documentation sent by HBOS. HBOS is unable to offer any advice to shareholders.
Shareholders should seek independent advice from a duly authorised financial adviser.
Latest news
22 July |
| Yesterday HBOS announced that it had raised £4bn through the rights issue. The underwriters placed those shares not taken up by shareholders when the rights issue offer period finished on Friday. And now almost 40% of shares have been taken up. Those shares that still remain (known as 'the stick') will be taken up by the underwriters and their sub-underwriters. They are free to sell these in the market. |
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21 July |
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HBOS announced today that
it has received 124,321,275 valid acceptances in respect of the new
shares, representing approximately 8.29% of the total number of new
shares offered to Shareholders through the rights issue announced on
29 April 2008. All HBOS directors took up their rights to the
fullest extent possible. HBOS has raised the extra £4bn capital. The
rights issue was fully underwritten. That means the investment banks
will make up the difference between the number of shares taken up
and the £4bn. It is expected that, where valid acceptances have been received, the new shares in uncertificated form will be credited to CREST accounts as soon as practicable after 8.00am on 21 July, and that definitive share certificates in respect of the new shares in certificated form will be despatched to Shareholders by 28 July. |
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14 July |
Shareholders who are in the HBOSSA nominee and with share certificates who elected to sell some or all of their rights by 4th July will begin receiving confirmation notes from today regarding their instructions. They may also receive a cheque for sale proceeds, where the amount is over £5.00. Under the terms of the free dealing service provided by Halifax Sharedealing Limited, any payment less than £5.00 will be donated to the HBOS 2008 charities of the year – CLIC Sargent, Age Concern and Diabetes UK. Shareholders with queries should contact the helpline on Shareholders who elected to take up all or some of their rights will receive confirmation in due course. Shareholders who take no action will receive a confirmation note week commencing 28th July. |
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27 June |
Andy Hornby updated shareholders about business performance at yesterday's General Meeting. Read the edited highlights here. |
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27 June |
Dennis Stevenson, chairman of HBOS, explained to shareholders why the rights issue is taking place. He was speaking at yesterday's General Meeting, held in Edinburgh. Read the edited highlights of his speech here. |
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27 June |
Nil paid rights trading begins. Trading in nil paid rights begins today. Shareholders can now view the nil paid rights price and the HBOS ordinary share price on the HBOSplc home page. |
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26 June |
Shareholders approved the HBOS rights issue at today's General Meeting in Edinburgh. Details of the voting results are available here. HBOS will now begin mailing Provisional Allotment Letters (PALs) to eligible certificated shareholders. The PALs set out shareholders' individual entitlements to 'nil paid rights' and the options available to them. The last date for returning the PAL is no later than 11am on Friday 18 July for shareholders who wish to participate in the rights issue. An updated questions and answers section is available from today on this site. |
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20 June |
HBOS will today begin mailing Forms of Election to over 1.4m private shareholders across the UK who hold their shares through the HBOS nominee account. The mailing is the latest stage of the rights issue process. The Form of Election will detail how many 'nil paid rights' individual private shareholders are entitled to and what options are available to them. The FOE should be returned no later than 11am on Friday 11 July, if shareholders wish to participate in the rights issue. An updated questions and answers section is available from today on this site. |
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19 June |
As part of the rights issue process HBOS will start to mail a Prospectus to shareholders this week. To read the Prospectus, click here. |
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19 June |
HBOS is today updating the City on its trading performance to the end of May and the outlook for the rest of the year. |
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11 June |
Further to its statement dated 1 June 2008, HBOS confirms that its fully underwritten rights issue is proceeding according to plan and that it will issue a Prospectus and detailed Trading Update week beginning 16th June 2008. Current trading and specifically mortgage arrears performance, is in line with the Group's expectations. |
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4 June |
HBOS has today issued a Circular. It contains information about the background to the rights issue and includes a timetable, the resolutions being tabled at the General Meeting in Edinburgh on 26 June, and the voting arrangements. |
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29 April |
The Board of HBOS plc announces a rights issue to raise £4.0 billion net of expenses to strengthen the HBOS capital base. |
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Further information
Please use the links on the left of this page to find out more about the rights issue.
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