SKT Sky Network Television Limited.

[mistaTea]

And surely, it's not a good look for them to have done that ridiculous capital raise at the equivalent of $1.20 ps, then, less than 2 years later, be offering to buy back those same shares at more than double the price?

No doubt they will weigh this up, but they can argue that things are different now. Earnings are much higher now than they were then etc etc.

I don't think shareholders are going to revolt either. If they do a buyback and they helps lift the SP further then the capital gains is all that people are going to care about.

If they just do a tax free a capital distribtion then the amount they can return that way is capped at the net proceeds they have from the asset sale (so somewhere between $50M-$55M). They cannot distribute any of the cash that has come from operations in that tax free manner.

If they do an on market buyback, they could use much more money if they wanted to.

Another option could be a 'tender offer' type arrangement where they offer to buy x amount of shares at the closing SP + some % premium. But that might not generate the interest they would like, and is my least preferred approach.

[Balance]

No doubt they will weigh this up, but they can argue that things are different now. Earnings are much higher now than they were then etc etc.

I don't think shareholders are going to revolt either. If they do a buyback and they helps lift the SP further then the capital gains is all that people are going to care about.

If they just do a tax free a capital distribtion then the amount they can return that way is capped at the net proceeds they have from the asset sale (so somewhere between $50M-$55M). They cannot distribute any of the cash that has come from operations in that tax free manner.

If they do an on market buyback, they could use much more money if they wanted to.

Another option could be a 'tender offer' type arrangement where they offer to buy x amount of shares at the closing SP + some % premium. But that might not generate the interest they would like, and is my least preferred approach.

Just do a AIA type capital return - 1 for 4 shares cancelled for $1.00. Nobody is going to object.

[mistaTea]

Just do a AIA type capital return - 1 for 4 shares cancelled for $1.00. Nobody is going to object.

Yes, this is a good approach.

But, as pointed out earlier, we cap the return to around $50M that way because it can only be from the proceeds of an asset sale to be tax free.

I would be more than happy with this approach for a number of reasons, including that it is quicker to distribute the funds to shareholders versus waiting for an on market buyback to play out (where you also don't really know how many shares Sky will end up being able to buy back as it will depend on how the SP behaves during the buyback).

They have a lot of good options from here.

[mistaTea]

https://www.sky.co.nz/-/sky-viacomcb...rtnership-2021

ViacomCBS deal just got extended further and expanded.

[LaserEyeKiwi]

https://www.sky.co.nz/-/sky-viacomcb...rtnership-2021

ViacomCBS deal just got extended further and expanded.

Thats interesting - would be good to know how exclusive “exclusive” means. Because Viacom also signed an “exclusive” deal with TVNZ for Paramount+ titles.

Doesn’t seem like they will be launching Paramount+ in NZ anymore if they have promised all their content to TVNZ & Sky on exclusive deals.

[mistaTea]

Thats interesting - would be good to know how exclusive “exclusive” means. Because Viacom also signed an “exclusive” deal with TVNZ for Paramount+ titles.

Doesn’t seem like they will be launching Paramount+ in NZ anymore if they have promised all their content to TVNZ & Sky on exclusive deals.

I thought TVNZ got the 'leftovers' at the time...the stuff Sky didn't really want.

[THEONE]

Hi MistaTea, where are you going after SKT. Do you have any other shares that you Fancy?

Arborgen seems interesting and Halo Foods on the ASX(Keytone Dairy)

[sb9]

Looks like big boys might be busy plugging numbers into abacus to come up magic figure, volumes suggest they're not yet in today in a big way..

[mistaTea]

Hi MistaTea, where are you going after SKT. Do you have any other shares that you Fancy?

Arborgen seems interesting and Halo Foods on the ASX(Keytone Dairy)

I really have no idea.

Been re-reading a lot of Jack Bogle lately too…

[mistaTea]

$2.74!!!!!!!!!!!!!!!!!!!!!!