The magician(institutions, traders) own more of what u should...

The magician(institutions, traders) own more of what u should have received NOW!

With consolidation the numbers of shares will decrease but ur % of ownership will remain the same

For the reduction in ur shareholding u gain a reward NOW, an extra income generally called a return of capital distribution. (RoC)
It benefits u as a small investors who overpaid for NHC shares and don’t wish to reduce ur ownership in this company.

This extra distribution income will in most cases for the mum and dad investors will probably be tax free.
The only proviso is the need to reduce ur cost base.

That is how u end up with 3 sources of income within a financial year, consisting of 2 dividends and RoC distribution, without the need to participate in the on-market buyback.

Ur remaining shares will theoretically also benefit with an increase in EPS besides the other financial metrics according to the supporters for the on-market buyback scheme.

To me it appears that the board has taken into consideration what is the most tax efficient way to distribute this pool of funds to the Institutions. T20 and professional traders.
This group of investors generally detest this form of RoC distribution because in their hands I believe it is treated as normal income and possible increase their tax obligations.

A fairer way would have been that half of this pool of funds should have been allocated as a RoC distribution and remainder for the on-market buyback. Keep in mind that these professionals groups are still entitled to dividends and even with my suggestion they still would a bigger slice to the pool of funds.

My comments are simply based on my understanding of the way a company can return excess funds to shareholders.

An example for getting a better understanding, I would suggest u read this year Suncorp’s RoC with Consolidation and the tax determination of the previous 2019 RoC with Consolidation.

The only pure RoC without consolidation that I had been involved was in AMP’s RoC distribution in 2006.
For some reasons it has fallen out of favour by many ASX company’s boards!