RE: I am confused!24 Apr 2024 11:06
Erebooni,
The 15% stake relates to the total market capitalisation., therefore this would reduce HMTs share by about half (as they currently own around 30% of market cap). However as these shares are then cancelled this actually does a couple of things - it reduces the share count by the same amount, effectively negating the (full) impact. Also it reduces the assets of the company by the same amount.
Ultimately as a current shareholder your overall share of the company goes up slightly, but the business is technically worth less (as they have spent money that doesn't increase the asset base).
In practice what this means is you shouldn't be worse off - however what it does is improve investor sentiment, which means people are willing to pay more for each share.
I'll be glad once all of the shares are repurchased, at this point we will see the true impact of where we are.