A buyback doesn’t necessarily float the share price.
There are a range of reasons to do a buyback, sine being
- the funds are excess
- share price is under valued (whatever that really means)
- to show investors management won’t blow out their brains on growth projects / M&A
It could be a mix of all 3.
A standard buyback arguable makes 1/10th of 1% of stuff all difference to the share price, WHCs may be a bit more meaningful as they will eventually be buying back 35% of the company.
It is quite possible WHC will end up paying more than the trading range when the buy back is done. If so I am completely fine with that, tighter control over a scarce high quality coal asset is fine with me.
Going a step further I’d be fine if they put debt back into the capital structure once the growth projects were executed. Again, better to have concentrated ownership.
Ann: Appendix 4D and Half Year Financial Report, page-245
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Last
$7.95 |
Change
0.200(2.58%) |
Mkt cap ! $6.650B | |||
| Open | High | Low | Value | Volume |
| $7.83 | $8.02 | $7.81 | $81.15M | 10.26M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 2 | 18264 | $7.95 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $7.99 | 13073 | 2 |
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| Last trade - 16.10pm 21/06/2024 (20 minute delay) ? |
| WHC (ASX) Chart |