Opened at $6.30 so up 13% and climbing. Where will it be at the end of the day?
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I just danced a jig in my office. My coworkers (who aren't investment minded) were somewhat bemused.
The cynical side of me really wonders why the company has publicly gone through this exercise.
I am with you Golden Stag. Pretty happy with the announcement. But was it all necessary ?
Well the price is holding up with over $10m traded. I would do a happy dance but it is only a small holding - it has been underperforming the market for some time but it does provide a constant dividend flow, soon to get much bigger.
Here is the bit of the announcement that confused me:
"As the company has accumulated a significant balance of imputation credits from capital raisings over recent years, the company has determined to return $367m (50cps) to shareholders through a fully imputed special dividend to be paid on 23rd June."
I thought imputation credits reflected tax already paid by the company on behalf of shareholders. How does raising new capital create imputation credits, when the new capital is not money earned by the business in operations? Can any accountants out there explain?
SNOOPY
PS I am pleased to see Goldenstag back in the black too!
I have held CEN since its listing and have never been asked to contribute capital.
I wonder if it is some accountancy thing-appreciation of value of assets which they have paid tax on
You dont receive IC from capital raising. Excess IC are generated when your taxable profit is greater than the amount of dividends distributed (gross simplification). My guess is their tax manager didn't review that press release and will now be the ridicule of the profession.