$126m of imputation credits of a company with a market cap of $290m is a lazy balance sheet item that is best in the hands of shareholders. They are of no use to the company. Future credits can be generated by regular NPAT and then distributed to shareholders by way of fully imputed dividends but obviously SKT is not in that position yet. Before that, a special dividend to take care of the existing credits would do the trick, but then SKT doesn't have the cash to do because they need to repay debt. The answer is probably a taxable bonus share issue to all shareholders, with the imputation credits attached to offset the tax liability. But....that just adds to the liquidity problem. So then a share consolidation is the next step. However I don't mind the way things are atm - if SKT performs, then the price will go up in the long term no matter how many shares are lying around. More free shares via a bonus issue would do nicely though. NB - I'm not 100% sure of weather a bonus share issue can carry imputation credits these days - it is something which Waste Management did way back in the day though.
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