Lloyds right issue deadline

Lloyds Banking Group shareholders have until Friday at latest to buy the new shares on offer in the bank’s record rights issue.

But investors wanting to sell their rights, or do a cashless take-up for some shares, may have already missed the deadline for these choices, depending on how they hold their stock.

The new shares are 37p, compared with Friday’s closing price of 56p.

The rights to buy the new shares – called “nil-paid rights” – have been trading separately this week and have fallen along with the bank’s shares, disappointing some sellers. Yesterday the rights closed at 18.75p.

With the new shares still at a discount, brokers said that for investors with sufficient funds it was worth taking up their entitlements. This avoids the dilution of holdings from the issue of so many new shares.

Shareholders who do not take up their rights will have their entitlements sold by the bank on their behalf and be sent a cheque for the proceeds.