musings on the agm, page-27

thanks CHC for saving for me the trouble of reposting that.

thanks shuffler for pointing out it is basic maths.

Bwana, you may forward it on to the management if you so please, but they are not interested in creating shareholder wealth on a risk free 100% basis and said as much at the AGM. The two directors were actually quite affable blokes and restated that they reckon they can find a better oil deal than the buyback. I think that is a really long bow to draw, but it is their party after all. The admin costs and fees are not excessive by any means and they deserve a little credit for that. That could quite easily rake out a lot more and we could do little about it.

wasi, nobody would be interested in taking over PPP mainly because the current major sh'ers would make them pay full price (ie >40 cents) and no-one would be prepared to offer that much. As a major sh'er why would you want to sell.

alonso, to answer your questions......

"wouldn't the directors & experts who sign off the documentation to accompany such a scheme have to disclose that the result of various levels of takeup would be increases in the value of remaining shares as per estimates?"

Probably, but in this current market if people need to sell, well they need to sell. Also for the company/directors it would put to bed once and for all the whole buyback question. Everyone who wants out can get out and everyone who wants to stay can stay, but once it is done, well then people cannot moan about it.

"and wouldn't the effect of such a disclosure be a limited take-up?"

Well logically any value investor would reject it 100%. However in the current unusual market that will depend on each individual sh'ers financial position and motives. Some people, in this market, may simply need to sell, expert report or no expert report. I would not really think something like this would require a lengthy expert report in any case. It's just a simple buyback at cash backing.


Hey everybody, this is becoming a good intelligent string well worth posting on. Anyone can feel free to ask me anything they like on share buybacks and I will try to answer. However, if anyone tries to tell me that 25 is bigger than 45, expect me to shoot you down or have some incredibly outstanding argument backed up by facts and figures.