Buyback Update and Forecast
Quote:
Originally Posted by
toddhunter
Hi all Todd Hunter here....I think it is worth just clarifying the safeguard guidelines that we adhere to in regard to the Buyback...there are no "tricks" going on.
- Turners will only buy back Shares through NZX’s trading/order matching system and during normal trading hours (i.e. there will be no off-market transactions).
- Shares will not be purchased at a price which is more than 10% above the average closing price for Shares on the NZSX over the previous five trading days.
- Turners will not take part in the opening transaction on a trading day.
- it is intended that the purchases by Turners over a one week period will not exceed 30% of the volume of Shares traded over that one week period.
The Management and Directors believe this is a good use of our capital at present.
Thanks
Todd
On 28th November 2018, TRA announced a buyback of up to 5% of the company's shares. That amounts to a maximum of 4,474,000 shares.
The buyback is due to end on 31st March 2019, in 33 days time. The buyback actually started on 2nd December 2018, so has been running for 86 days. So far, 2,086,567 shares have been acquired and cancelled. If the rate at which shares are acquired remains constant, how many will have been acquired by TRA before the 31st March 2019 balance date?
|
Maximum Bought |
Actual + Projected Bought |
Shares on Issue 01-12-2018 |
89,442,154 |
89,442,154 |
less Actual Shares bought to 26-02-2019 |
|
(2,086,567) |
less Projected Shares bought to 31-03-2019 |
|
(800,659) |
less Maximum Shares bought to 31-03-2019 |
(4,474,000) |
|
equals Shares Outstanding to 31-03-2019 |
84,968,154 |
86,554,928 |
Of course, there is no reason in particular why Turners should keep buying their own shares at the same rate as they were doing before. They may increase their buying rate to bring the total shares acquired up to the maximum. If Milford owned 6,777,710 shares representing 7.995% of TRA shares on 03/03/2018 and they now own 6,021,281m representing 6.850% shares on 13/02/2019 then Milford still retain a lot more shares they can sell back to Turners on market.
SNOOPY
P.S. If Milford held that many shares last year, can anyone explain why they were not listed as a substantial holder on page 87 in the FY2018 annual report?
Answer: It has now emerged that the Annual Report was changed some date after the hard copy was sent out to shareholders. In the revised edition available on the TRA website, both Milford and Salt Funds are listed as substantial shareholders.