The buyback is accretive to NAV, as long as the CVR is in the money: the less shares outstanding there are, the more valuable the CVR is per share.
Now, the current buyback quantum and pace is inappropriate, it would be much more efficient for the company to conduct an off-market buyback or a partial tender at a premium and for a large portion of the cash balance.
The fact that they are implementing this glacial pace of capital return opens up the risk of them blowing up the cash on some dubious acquisition.
Ann: Update - Notification of buy-back - FAR, page-5
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Mkt cap ! $46.20M | |||
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| Price($) | Vol. | No. |
|---|---|---|
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