Buybacks followed by divvys most likely course of action from here. Any other material deal would have been done before now.
Some speculation on ST that a M&A event will happen tomorrow and that somehow everyone was waiting for the magical date of August 25 before the big reveal. Load of bs, but anyway.
Some excerpts from my latest rantings and ravings on ST...
"The good news for Sky is that if they do take the conservative approach and do buybacks and divvys...
The buyback could potentially reduce shares outstanding to ~1.2B.
If an initial divvy of 30M increased the market cap to represent a 7-8% yield, then that would be a MC ~375M-430M (31c - 36c per share).This is pretty much what BlackCrane are predicting based on their presentation (and have made clear to the board in terms of their expectations moving forward)."
Further to the above...NZME (a business I draw many parallels between Sky...) has just reinstated their divvy. Market cap seems to imply a yield of 6%. If Sky commanded that kind of yield you would be looking at a market cap closer to $500M (42c/share based on 1.2B shares outstanding).
Even though buybacks/divvys would be the most conservative route for The Board...it may be the safest path for them. And if they do go down this path...and manage to get the SP to 30c+...well they will feel vindicated for rejecting the offers by Comcast and PE to sell the business
SKT Price at posting:
15.8¢ Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)