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Value of ESOP Shares

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Comments

  • Registered Users Posts: 41 Isityourself


    Seeing as the ESOP has bought so many shares over the past number of years, was there not something about reissuing these shares to current staff??? or what will become of them....unless ESB buy them from ESOP anddissolve them....but they cannot do that outside of the market day??

    Also while ESB have bought some already and dissolved them, does this mean the 5% holding of the company is being reduced, or does it mean that there are less shares for 5% of the holding of the company, making each share worth a little bit more in a 'real' market situation??


  • Registered Users Posts: 162 ✭✭ waldo


    Seeing as the ESOP has bought so many shares over the past number of years, was there not something about reissuing these shares to current staff??? or what will become of them....unless ESB buy them from ESOP anddissolve them....but they cannot do that outside of the market day??

    Also while ESB have bought some already and dissolved them, does this mean the 5% holding of the company is being reduced, or does it mean that there are less shares for 5% of the holding of the company, making each share worth a little bit more in a 'real' market situation??


    Before the recent market, the ESOP had purchased about 19 million shares from ESOP forced and voluntary sellers. This is a good chunk of the 100 million shares issued to the ESOP. I understand that the ESOP intend to notionally allocate these on an equal basis to all qualifying participants. I don't know if that means all members of the ESOP, or all current staff with the required qualifying service. These shares will distributed on an equal basis (not pro-rata).

    The ESOP have delayed this process (my opinion only) because they are getting dividends on these 19 million shares (of 100m issued to the ESOP). This information is available from the ESOP market documents issued to staff. These dividends are then used to "support" the market. 7% of voluntary sellers shares were sold in the last market, which indicates a very high level of sellers, or a reluctance on behalf of the ESOP to buy up shares of voluntary sellers (maybe a mixture of both).

    There is very very little interest from staff in purchasing in the internal markets. I don't know why because the potential market value is closer to 4-6 Billion or 2-3 euros per share, perhaps much more. Some staff are not allowed because entry to the scheme has been closed for many years now. I'm sure lots of staff don't even know it exists, given the lack of (any) notifications internally.

    There are 2 billion shares, so if ESB Group buys some from the ESOP then the % of the ESOP holding will drop by a corresponding amount. It will not increase the "value" of remaining shares. ESB Group may cancel them or sell them back to staff in future markets.


  • Registered Users Posts: 223 ✭✭ wiilow74


    Anyone know if there are any dividend payments to be paid for shares before the end of the year , they had a payment last year on the 28th of October and one on the 23rd of October 2015 but none after the internal market so far , anyone know why ?


  • Registered Users Posts: 9 mickey2012


    Hi did anyone find out how much the shares went for today?


  • Registered Users Posts: 15 Jimbobjones


    No,didn’t hear anything.......any news today?


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  • Registered Users Posts: 162 ✭✭ waldo


    No,didn’t hear anything.......any news today?

    News won’t be out for a few days, but if you ring Pwc they will tell you what your sales/purchases etc went for.


  • Registered Users Posts: 162 ✭✭ waldo


    waldo wrote: »
    News won’t be out for a few days, but if you ring Pwc they will tell you what your sales/purchases etc went for.

    Results are up. 1.09 to all successful sellers.
    Interestingly the % of voluntarily offered shares sold is up from 7% to 28%.


  • Registered Users Posts: 15 Jimbobjones


    waldo wrote: »
    Results are up. 1.09 to all successful sellers.
    Interestingly the % of voluntarily offered shares sold is up from 7% to 28%.

    Yeah seen that.........the board buying hard.....going to buy them all back at some stage I’d say


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