RE: Share Buybacks29 Apr 2023 11:22
There are several reasons why buy backs won't happen.
The official reason: The Board believes that share buybacks can only offer a short-term solution. To buy back
shares would increase risk concentration, as the proportion of the portfolio invested in Ocean Wilsons would increase which the Board wishes to avoid. The Board continues to provide transparency of dividend and buy back policies to shareholders in documents and presentations.
The unofficial reason: Directors are also large shareholders (Saloman family). But also that the charges are 2.02% buy backs would increase the percentage (spread among fewer shares).
The NAV is in a £3 to £3.10 range. But the look through on Ocean Wilsons is 50% discount to NAV so is worth another £0.40.
This is on a 50% discount to NAV whereas historically both Wilsons and Hansa were on a 20% discount. Suggesting there's a 65% (£1.05/share) upside, solely on the discount reverting and let alone its overlooked purpose (As driven by the Saloman family) for wealth preservation.