The purpose of selling the stake in Mt Signal was to demonstrate that the market value of NEW's assets are in fact what NEW says they are, in the hope that the market will re-rate NEW to reflect the true value of its underlying assets. Not clear yet whether they will use the funds to buy back shares - that's just one option (though perhaps the most likely option with the huncertainty of the current COVID-19 world).
The 5% distribution is a one-off reduction due to plant and weather issues, some of which may be covered by insurance. It should return to > 6% in future periods. Not easy to get that sort of return from a bank these days. What would you suggest is a better deal for shareholders?
Insanely cheap, page-54
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