You are spot on, they have to find the money somewhere.
Based on quarterly profit annualised HVN is about $100m short of funding for its buyback.
If it keeps dividend at 12c per half that costs another $300m so we are now $400m short.
Unused finance facilities at 30 June were about $300m excluding overdraft.
I know the above are very much ballpark figures but it seems to me that in order to complete the buyback HVN has to slash dividend and/or ramp its borrowing facilities to max and/or establish new borrowing facilities.
I understand the motivation to buy back considering the medium/long term outlook, just not sure it is financially prudent given the short term outlook.
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- Ann: Announcement of buy-back - Appendix 3C
Ann: Announcement of buy-back - Appendix 3C, page-7
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Last
$4.58 |
Change
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Mkt cap ! $5.712B |
Open | High | Low | Value | Volume |
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Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
9 | 698 | $4.58 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$4.59 | 34026 | 36 |
View Market Depth
No. | Vol. | Price($) |
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27 | 9814 | 4.580 |
24 | 46791 | 4.570 |
17 | 40844 | 4.560 |
20 | 60494 | 4.550 |
13 | 119485 | 4.540 |
Price($) | Vol. | No. |
---|---|---|
4.590 | 26299 | 32 |
4.600 | 45394 | 20 |
4.610 | 44012 | 13 |
4.620 | 48271 | 16 |
4.630 | 122780 | 10 |
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