Forum Archive Index - August 2001

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Re: Re: Re: RE: [sharechat] RBC buyback: Calculations needed

From:	"G Stolwyk" <stolwyk@wave.co.nz>
Date:	Sun, 12 Aug 2001 18:08:55 +1200

Greg,

I agree with you on all counts.

We now arrive at the next exercise:

RBC has completed the buyback of 74 mill. shares @ an average cost of 80 cents and now has 278 mill. shares left.

The latest NTA / share = $ 1.053 ( Refer to B. Malthus report of today).

Apart from other assets, RBC has 492 mill. FFS shares which RBC originally bought @ 32 cents/ share.

Arising from my post of today, time 13.01, RBC will also accept 50 cents / share for their 492 mill. FFS shares. Settlement will be now!

Assume that there is no tax to pay and there are no transaction or any other costs.

Questions:

1. What will RBC's NTA / share be immediately after they sold the 492 mill. FFS shares @ 50 cents / share?

2. Assuming that there remains a 20% discount to this NTA, what should RBC then be selling at?

Sharechatters, what are your answers, please?

Gerry

PS: Yes, more good news for RBC to come?

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