Forum Archive Index - September 1999

["Jonathan James Wall" <jwall@nznet.gen.nz>]

Given that the new CEO of BIL was the CEO of an Investment Bank, and given that his background, it would appear that from the company's viewpoint the buyback is a good one. On the one hand BIL gets to buy back is shares at a cost lower than the asset value. In regards to the shareholders out there, it is both a good decision. The value of BIL shares will increase, as the number of remaining shares will fall. (i.e. NTA will increase by an amount equal to current assests / current shares x 1.00 / (1.00 + % total shares that buyback is equal to). Sorry if this sounds a bit mathsy, but it will increase the shareholders ownership. So good on that part.

 

In my view. It is a good thing; BIL can reduce its total shareholdings, and theirby increase its NTA. Perhaps they should have got an Investment Banker / Merchant Banker type involved long ago. Or someone that new what they were doing. 

 

On the whole, BIL may be on the rise, however the market still discounts pure investment vehicles, and it will be a while to see if BIL, and / or others, can change the markets view of it.

 

Jonathan Wall

 

 

----- Original Message -----

From: GPT

To: Sharechat

Sent: Tuesday, September 07, 1999 10:17 PM

Subject: [sharechat] BIL

Does any body have any comment on BIL's proposed share buyback.