There could be a silver lining to this.
If the merger does not go ahead, ANZ are sitting on $3.5B of capital that they no longer need - they may choose to return this to whence it came, i.e. shareholders by way of off-market buy-back.
A possible scenario is ANZ share price is say $25 so the buy-back is done at $21.50 (14% discount) & say a capital component of $4 & fully franked dividend component of $17.50 with attached imputation credits of $7.50 giving total proceeds of $29 for zero percent taxpayers (pension funds, etc.).
ANZ could buy-back 160M share on this basis to return the capital which would effectively release $1.2B in otherwise inaccessible tax credit value to ANZ shareholders.
If government regulatory authorities are going to block the merger may as well make them pay for their actions. I know this may be considered a self-defeating proposition but I am wearing my ANZ shareholder hat as opposed to my Australian taxpayer hat.
The above figures are just ballpark potential numbers based more on providing nice round outcomes rather than a detailed estimation of capital/dividend components, etc. but the numbers are not unreasonable in comparison to previous off-market buy-backs e.g. CBA (the franked div component is a little bit high maybe).
Potentially releasing $1.2B to ANZ shareholders from the coffers of the ATO is not something I am averse to - it may also push regulators to more fully consider the ramifications of their decisions (if there is any doubt I do not agree with the ACCC decision but that is just my personal opinion).
What do others think - potential silver lining or am I just tilting at windmills?
- Forums
- ASX - By Stock
- ANZ
- Ann: AXX:ACCC deny authorisation for ANZ to acquire Suncorp Bank
Ann: AXX:ACCC deny authorisation for ANZ to acquire Suncorp Bank, page-16
-
- There are more pages in this discussion • 1 more message in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add ANZ (ASX) to my watchlist
(20min delay)
|
|||||
Last
$29.13 |
Change
-0.110(0.38%) |
Mkt cap ! $87.60B |
Open | High | Low | Value | Volume |
$29.24 | $29.29 | $29.03 | $110.6M | 3.802M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
2 | 8379 | $29.12 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$29.14 | 15867 | 2 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
2 | 1236 | 29.090 |
1 | 9489 | 29.060 |
1 | 3350 | 29.040 |
2 | 9867 | 29.020 |
5 | 10516 | 29.000 |
Price($) | Vol. | No. |
---|---|---|
29.140 | 15867 | 2 |
29.150 | 9767 | 3 |
29.160 | 540 | 2 |
29.170 | 29027 | 4 |
29.190 | 14721 | 3 |
Last trade - 16.10pm 19/06/2024 (20 minute delay) ? |
Featured News
ANZ (ASX) Chart |
The Watchlist
INF
INFINITY LITHIUM CORPORATION LIMITED
Ryan Parkin, Managing Director & CEO
Ryan Parkin
Managing Director & CEO
Previous Video
Next Video
SPONSORED BY The Market Online