RE: Chat (FWIW) GLA17 Aug 2025 18:11
knot: your assumption on buyback increase the share price is poppy ****. if your do 10% buyback and cancel the shares, the value of the company is down 10% because you have spent the money to buy back, so the value of the company is now £90m and divide by 90m shares, the individual share price is still £1 and not £1.11.
one of the main beneficiary is the people with share options and their renunciation is based on the future raise.
the only benefit for shareholders is that future profit is shared among fewer shares and you may get a smaller rice in the future. this is more complex than meet the eye. other beneficiaries are people on higher tax bands which include all directors, where they may get larger bonuses.