Vodafone share buyback9 Sep 2022 15:05
Anybody who doesn't understand the Vodafone share buybacks (M.C.B.'s) I suggest you google Vodafone MCB. & read the company announcement dated 9/3/22 entitled,mandatory convertible bond & associated share buy back. Part of which states "Vodafone has given irrevocable & non discretionary instructions to Goldman Sachs in relation to the2022 buy back program". So they are obliged to buy back the shares. If they didn't, the share value would be diluted, & the share price would fall accordingly. It was basically a way of borrowing money, & I have seen of figure about 1.2 to 1.5% paid to the bond holders, although that may be an old figure. The whole business model of vodafone was, & still is, based on high gearing, so they had to borrow to survive. Of course some may argue that they have over borrowed, but these decisions have to be made in advance, not with hindsight.