Trying to get my head around possible benefit of off-market buy-back to individual shareholders.
I calculate that snagging a buy-back at 8% discount, could give you - 8% better return (than on-market buy back) if your original buy price was close to $25 - 4% better return if your original buy price was close to $18
Buy-back at 14% discount - 2% better return if your original buy price was close to $25 - minus 2% worse return if your original buy price was close to $18
Obviously lots of swings and roundabouts based on an individuals tax circumstances and DYOR etc etc.
Biggest factor will be the tax treatment of the capital loss due to "The Capital Component will be $11.34", so I suppose this buy-back might be useful to funds or individuals that want to reduce their capital gains for this tax year.
Does anybody find this off-market buy-back compelling?
WBC Price at posting:
$24.05 Sentiment: Hold Disclosure: Held
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