Originally Posted by
Snoopy
Hindsight now provides the answer, and nothing was done. 263,092 shares were issued as a result of the DRP at $1.09. Chatting after the AGM I was told that the board had identified that it was largely a substantial holder doing the selling and playing an arbitrage game. Selling at $1.20 and picking up new shares at $1.09 to replace them was a good little cash generating exercise by the looks of things. The seller was a "new" large shareholder, acting on advice of their financial advisor. The board are looking at changing the DRP parameters next time to make this sort of thing less attractive. As a general policy this new large shareholder apparently assured the board it is a net buyer not a seller of shares. The board was apparently genuinely surprised that their DRP scheme had been manipulated like this. I thought the board were probably a little naieve....
SNOOPY