I am new to this stock. A big thank you to GoNuke for sharing his information.
I do not understand the logic behind the on market share buy- back. The stock is already illiquid. There are insufficient sellers for CYC to purchase 14,897,183 shares.
Do some of the major shareholders have a need to sell their holdings (maybe to pay tax penalties) and therefore CYC will soak up the selling through the on market buy back?
Why not distribute the excess cash through higher dividends? Is it better for shareholders that reside in tax havens to sell their shares than receive dividends?
Also, what does the 10/12 limit mean in “On market buy-back over 10/12 limit (up to 25% of shares on issue)” from the ASX announcement
I am confused and would appreciate any comments.
CYC Price at posting:
64.5¢ Sentiment: None Disclosure: Not Held
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