Sallies to repurchase shares?

[bangbul]

Sallies seeks authority to repurchase shares at an. meeting! What's up. They got money somewhere? Appreciate any take on this, thanks.

[#2]

what shares are they going to purchase? They have about R50m in cash, and they have a pref share that is paying out something like 20%. So if they are going to use the cash to buy back the pref shares, great - it will reduce their long term debt.

[bangbul]

Circular states; both ordinary shares& convert. debentures. Also state they can honour order for calender year 2009 without mining. No ref. to value of inventries.

[SKALA]

What is the link between Sallies and SNU???

[bangbul]

Nothing. Sorry, just clicked on new topic while reading Sal's circular.

[#6]

I calculate their inventories to be around R60m, and if they are rebuying their debentures, then I am starting to get interested in this stock again. My read into this is that their cash flow situation must be improving if htey are taking these steps (or else they have calculated that they can't survive with those debentures chewing their cash reserves)

[bangbul]

Maybe bit of both? Repurchase of ord. shares puzzled me, suppose higher share value & lower return rate might motivate convertion of deb.