Newbie question so forgive my ignorance, but is this a buy with a share price of 220 and a dividend of 199 net ?? There seems to be great enthusiasm to buy over the last 2 days... All comments appreciated.
Agreed. After the special divi has been paid,the bits and pieces left in the structure aren't worth much. THe directors have also said they cannot estiamte when the final liabilities etc will be offloaded, so it is fairly uncertain as to what may come from this. The money has already been made in this restructure. The guys at Tantalum Capital do a decent job at profiting from these scenarios (if I remember correctly, they were a major shareholder in the Dialogue Group and made some good money from corporate action)
Yes, little point now putting your money into this and getting some back after tax. Then you could wait a long time to get the balance and an unknown premium. As a cash shell they will be delisted and then it is interesting how quiet companies become once they are off the exchange.
After dumping the "shell" and accept the dividend - you will acquirea tax benefit of marginal rate - tax on dividend (should be less than normal due to various STC regime reserves carried forward.) SO - roughly 30% tax "benefit" to carry forward. A fantastic deal.