I know I have the power of Google but would like to throw a question out to the forum as we have some very knowledgeable folk here regarding Consolidation of Shares.

I have been a heavy investor in one particular company who I used to work for, unfortunately the company is not performing well and the price has been very poor for a long time with no dividend. I have just received a notification today from Hargreaves Lansdown who I have the shared lodged with that says:

"The board of xxx has announced a reorganisation of the company’s share capital. Shareholders as at close of business on 28 April 2025 will have their holding consolidated, receiving 1 new share in place of every 15 previously held."

So assuming the vote says this can go ahead does this mean that the 1 new share will be valued at 15 times the current share? I fully understand that the share price will change based on the market but I presume at least at the time of the transition they would be worth 15 of the old shares.

What advantage do companies get out of doing this sort of thing?

Thanks
Eddie

"How the Buyer Protection fee works

The fee will be included in the item price from private sellers, so there are no surprises at checkout.

Buyers will pay up to 4% of the item price, plus £0.75.** For example, when they see an item for £20, the fee of £1.49 will already be part of the price.

The fee is lower on higher-priced items over £300, and there’s a cap on the total amount they’ll pay.

For items from business sellers, they’ll get the Buyer Protection benefits at no extra cost."

So if I understand this correctly the cost is now moved to the buyer (LOL), I guess that is inline with other (real) auctions houses but I guess eBay are not making enough dosh with the move to "free selling" so in effect have just reversed the charges.

Edit: Added some extra new T&Cs:

"Now, to give your buyers even more confidence when shopping, UK-based private sellers will be paid after item delivery, from 4 Feb. Your funds will be available in your eBay balance two days after delivery confirmation.*** We know it’s important to get your money fast, so we recommend using a tracked delivery service either through Simple Delivery, or arranging for local collection."