Hi all,
From reading the JBH announcements, it sounds like the the buyback was funded through some kind of loan:
"As the buy-back will be largely funded through JB Hi-Fi�s senior debt facility, the likely financial impact on FY11 earnings is approximately one month�s financing cost ($0.7 million) on the expected cash outflow relating to the buy-back."
I might be wrong here, but doesn't that basically equate to them buying their own shares on margin? Given that the average share price they paid was $16.00, and the SP is now $14, wouldn't shareholders have been better off without that?
I can understand it if they had excess cash laying around, but why on margin? Isn't it just adding both debt and equity at the same time?
Please let me know if I have this wrong :)
buyback?
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Last
$80.98 |
Change
1.410(1.77%) |
Mkt cap ! $8.853B | |||
| Open | High | Low | Value | Volume |
| $79.77 | $81.12 | $78.98 | $21.06M | 261.9K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 40 | $80.90 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $81.00 | 4485 | 1 |
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| Last trade - 16.10pm 02/09/2024 (20 minute delay) ? |
| JBH (ASX) Chart |