Using the CBA's spreadsheet (page 26 of the buyback booklet) and the buyback price announced today $88.62, I get
a) for 15% tax superfund a proceed of $104.26 after tax proceeds b) for 0% superfund (pension mode) of $117.32 after tax proceeds
As of close today, the buyback was good for shareholders in pension mode, but not for superfund members (15% taxrate).
Due to the mix in my superfund (15% and 0%), I am roughly 1 dollar ahead overall. Due to the rise of ca $5 today, a paper gain turned into a "near nothing event", i.e. $1 per share bought back.
Perhaps today's $5 movement is explicable somehow, yet unexpected given Friday's close of $100.08; a 3.8% capital buyback generating a 5% appreciation of the share (reduced basis) if one includes today's general market rise of 1.2%; should have gone a tad higher actually. ... market seems rational - no arbitrage / opportunity here.
I am posting Hold and Held, since I think not all of my tender was accepted. ... Years ago, the TLS buy back was a way better deal - I seem to remember (but then TLS was on a downtrend).
CBA Price at posting:
$105.16 Sentiment: Hold Disclosure: Held
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