Although it's a good idea for MGX to buy-back shares when they're apparently cheap and when the Company is not in a position to pay fully franked dividends - it would again be a case of how the two controlling shareholders(Allied Properties of HK & Shougang Group of Beijing) that have around 50% of the issued shares view such a transaction and whether they would sell some shares into the buy-back or just sit there and have their ownership percentage increase without any financial payment from them. The closer their combined shareholding gets to 75% then the closer they can gain complete control through a 'Scheme of Arrangement'.
At the moment, Paradice's 9.5% shareholding is protecting other shareholders to a large degree from such an outcome - any reduction in Paradise's shareholding going forward then I'd be outta here quicker than jack flash.
MGX Price at posting:
44.0¢ Sentiment: Hold Disclosure: Held
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