They did this a couple of years ago. What happens after a special dividend is that the s/p drops by the amount of the dividend - logically.
What they are trying to do now is support the share price. Maybe they have some options they want to get "in the money".
I'd say they are probably right in that they can achieve more in this market by buying back shares. If they buy back 10%, and you hold yours, this means any dividends in the future will be 10% higher, therefore supporting a higher share price also.
I'm very happy with this decision - as long as the s/p is below cash backing, a buy-back is a GUARANTEED positive investment for long term holders.
AAH
arana therapeutics limited
