as they say eadwig…“in due course”…ha!
Great news on buy back looks like they are to offer over 100% on todays price…does it mean Jite has paid?..plus others are posting maybe a dividend is in the offering!!!..can only be good news.
18 October 2019
San Leon Energy plc
(“San Leon” or the “Company”)
Proposed Share Buyback
San Leon Energy plc today announces that, pursuant to the shareholder resolutions passed on 27 September 2019 at the Annual General Meeting, it plans to acquire ordinary shares of EUR 0.01 nominal value each (“Ordinary Shares”), up to a total value of USD 2.0 million (the “Buyback Programme”). In accordance with the shareholder resolutions, the Company is proposing to acquire the Ordinary Shares at a maximum price of the greater of (i) 105% of the average market price of such shares for the previous five days and (ii) the higher of the price quoted for the last independent trade and the highest current independent bid or offer for such shares.
hardly great - see my post in the buy back thread
It doesn’t mean that. Its a standard buyback, if the share price rises more than 5% (average of the last 5 days) they cease buying that day and then start again from the average of the last 5 days the next day with the same limitation.
That’s right eadwig but they can buy upto 100% which is encouraging… something is happening and may might be for the better…
I think you’ve misunderstood that, @linksdean. All that clause means is that E.g. if the price average for the last 5 days is 30p at the start of a day, their buying in the open market on any given day must stop @31.5p (I.e. +5%). The last 5 day average changes the next day and off they go again, but with the same restrictions. And that is buying up to 105% by the way, not 100%
I know this because the same clause was in an HSBA buyback I was following a few years ago and I actually rang the finance director to get nailed down what it meant - and that is what it means above. In that particular buyback, every buy was listed the next day. Occasionally, when there was a relatively steep rise, that clause kicked in and you could see it on the buy statement because the buying stopped, say, at lunch time, instead of carrying on until 4:15pm as usual.
Feel free to copy this to LSE or elsewhere because it sounds like you’ve read some posts there which are confused over this, and I’m certain I’m right on this. As i say, its completely standard terms for a buyback in the open market. I don’t have time to check them out myself today - or this weekend - back to the UK on Saturday.
It does say at a maximum price of the greater of 105% of the average market price.
So we will see.
In accordance with the shareholder resolutions, the Company is proposing to acquire the Ordinary Shares at a maximum price of the greater of (i) 105% of the average market price of such shares for the previous five days
And as someone has posted…
This is no way rules out a dividend. Company only spending 2m. Dividend still very likely, just that now it will be preceded by buying some portion of 6m shares which can be bought and cancelled, thus avoiding having to pay divi on those shares of course.
I already said that in the other thread.
What it does rule out is that rubbish about waiting for the extra $7m to be paid when there is no need to wait to pay an interim dividend.
There must have been a reason for this wait to release this news eadwig!
Eadwig - Thanks your comments.
The introduction of the share repurchase plan must surely be the way that SLE has chosen to signal to the market that it’s shares are grossly undervalued. Supposedly the repurchase of shares could even be spread over the coming months or years and be then reissued at some time in the future at a substantially higher valuation than today resulting in returning even more value to the company.
The implement of a repurchase plan in no way excludes the issuance of dividends.
I intend to maintain my holding in the company in the medium term.
Correct me if I’m mistaken but I thought the shares purchased were scheduled for cancellation?
theprior - Your correct I was wrong - apologies - Brexit on my mind!
Ordinary Shares acquired as a result of the Buyback Programme will be cancelled. The Buyback Programme will be funded from the Company’s current cash balances.