I think there is essentially one good thing and one bad thing...

I think there is essentially one good thing and one bad thing about the capital management strategy.

The good thing is un locking the cash and returning it the share holders via the dividend and capital return

The bad thing is this is also about control and those with it keeping more of the value to themselves

The board is aware of the excess cash and is offering to return it to shareholders

If that's so why is the dividend re investment plan available . doesn't this defeat the purpose of returning the excess cash

Also the capital return will be optional for participation. I bet you have to opt out. And because its optional the buy back price becomes extremely important. How do you determine fair value of TGA

Finally I bet the major shareholder , Somers , will fully participate in the dividend re investment and completely opt out of the capital return.

Somers have about 31% if they full participate in the dividend re investment and do not participate in the capital return( say at 20c a share) and 50% of the balance of shares fully participate in the dividend re investment and opt out of the buy back Somers will be up to 37%.

Sounds to me there will be more value in fully participating in the divi reinvestment and opt out of the capital return. But the problem with staying in is that Somers will be getting more and more control