I must also clarify…
When I say that in the capital return scenario that all else being equal, the SP “should” double to 32c…
That is based on the assumption that the current market capitalisation is based on a multiple of GAAP earnings, and no portion of the MC is based on hard assets owned.
If part of the valuation takes into account the $100M or land/buildings (and I really don’t think it does) then you would actually see the market cap DECREASE by $100M after the capital returned ($180M). That would be a SP of only ~20c/share.
But, you get the one-off tax free payment too.
So I do think shareholders can benefit from this approach…but thought I should clarify that one point.
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