They've also announced a significant $ 20
mio share buyback (but haven't pulled the trigger yet).
Actually, let me assume a 98.6
mio share buyback (you'll see why below), at a max.
A 5
mio share buyback at (say) an average 10 % premium will only cost $ 58 mio.
But kudos to management for the 22
mio share buyback last year...!
Not exact matches
My only other complaint is the slow pace of
share buybacks this year, with only $ 4
mio spent by end - Sep.
My only other complaint is the slow pace of
share buybacks this year, with only $ 6
mio spent by end - Dec.
A further $ 2 million was spent on
share buyback in the 4th quarter, which I estimate retires approx. 0.205
mio ADRs.
Let's examine a major Argo
buyback: Assume 50 % of outstanding
shares were ultimately retired, at a generous 30 % higher (GBP 13.2 p) average
buyback (or tender) price, costing just $ 7.1
mio.
However, they've just executed their first
share buyback of the year (for 3.5
mio shares), which cost $ 1.7
mio.
In this instance,
share buybacks & tenders clearly offer the most compelling & attractive utilization of all cash raised (except EUR 5.9
mio for debt reduction).
Targeting this median 0.8 % of AUM, Argo could distribute (via
share buyback, tender, etc.) almost 150 % of its current $ 14.3
mio market cap.