Ann: FY25 Half Year Results & On-Market Share Buy Back, page-44

It basically amounts to designing a return that satisfy the big end of town!

The loophole that allows for this con job to be approved by the ATO amounts to wording…..” all shareholders are not disadvantaged because they have the right to participate if they choose too”

A researcher should look at who participates in this type of buybacks and whether there is an inherent bias that advantage a particular group.

Study a couple of alternative return of capital …. Recently a return of capital was carried out by Suncorp ….I had 1000 shares…received $3000 and special dividends of 22 cents per share.
On top of that I still received a normal dividend of 41cents but my shareholding was consolidated from 1000 shares to 852..

Reducing the share numbers is the aim of the NHC buyback….SUN alternative option achieved this aim but I still retain the same percentage of ownership in the company.
I now have funding to make my own investment decisions whether to buy more SUN Shares or allocate some into other companies.

The other return of capital option is u still retain the same percentage of shares ownership but more than likely the majority of shareholders will only have to reduce their cost bases….some may need to pay the lowe capital gains tax.

Look at WES return of capital 2021 to get a better understanding.

There maybe special ATO criteria that must be met to be able to utilise the fairer options that I’m not aware off!